MODERN METHODS IN 
THE OFFICE 



MODERN ** 
METHODS IN THE OFFICE 

HOW TO CUT CORNERS AND SAVE MONEY 



BY 



H. J. BARRETT 

AUTHOR OP 
"DOLLARS AND sensb" 




HARPER fcf BROTHERS PUBLISHERS 

NEW YORK AND LONDON 



J. 
o 
y 



m -4 1918 



Modern Methods in the Office 

Copyright, 1918, by Harper & Brothers 

Printed in the United States of America 

Published May, 1918 

D-S 



97183 



CONTENTS 

CHAP. PA< ? E 

Foreword lx 

I. Typing and Correspondence 1 

Typing Signatures Prevents Trouble— Renewing Typewriter 
Ribbons — Measuring Typed Matter — Increasing the Life of 
Carbon Paper — How to Improve a Business Letter — Office 
Time-savers — How Daisy Bennett Secured a Merited Pro- 
motion — Office Economies Which are Worth While — For the 
Stenographer Who Seeks Efficiency— Tips for Typists— Let- 
ters: Their Physical Appearance — How to Obtain Good 
Duplicates and Triplicates on a Typewriter — Carbon Copies 
vs. Press Copies; Plain Envelopes vs. Window Envelopes — 
Dictation by Telephone— A New Wrinkle in Business Cor- 
respondence — Saving Typists' Time — Is Your Business Cor- 
respondence Up-to-date? — Cutting Correspondence Costs — 
For the Stenographer — A Simple Idea Increases this Stenog- 
rapher's Speed — A Time-saver for Typists — Pointed Para- 
graphs for Enterprising Typists — A Carbon Copy Inclosed 
with the Original Letter — Envelopes of Various Colors Serve 
to Simplify Sorting of Mail— Efficiency Principles Eliminate 
Ten Typists. 

II. Problems of Personnel 34 

Efficiency in the Office— Quantitative Tests for the Selec- 
tion of Employees — Salary and Bonus for Typists — How 
Good Management Stimulates Employees to Their Best 
Efforts— Increasing the Efficiency of a Stenographic Force — 
An Equitable Distribution of Work Means Contentment — 
A Simple Plan Which Changed the Mental Attitude of This 
Office Force— Saving Time in Office Work— Hiring Help Scien- 
tifically—Are You Mentally Subnormal?— A Concern with 
the Right Spirit— How to Hire Men— Saving Delivery Ex- 
pense—How to Hire Competent Employees — "An Executive 



CONTENTS 

CHAP. PAGE 

Should Possess a Good Working Knowledge of Psychology," 
says the President of this Hardware Concern — Reducing Labor 
Turnover More than One-half — Test Yourself by this Stand- 
ard — "The Man, Not the Money, Is What Counts ,"says this 
Credit-man— How Siebolt Saved His Firm $6,000 a Year — 
The Value of Personality in Business — A College Education 
for Business Men — Wanted: Self-starters — -The Business Man 
of the Future — Character Analysis in Selecting Employees — 
To-morrow's Executives — Keeping Executives on the Jump 
— A Royal Road to Experience — " Make Applicants for Credit 
Pass an Examination," says this Credit-man — Democracy in 
Management — What Makes a Successful Executive — A Passage 
from Exodus Solved this Business Man's Problem — Have You 
Perspective? — Piece-work vs. Day-work — How to Insure a 
Satisfactory Volume Under a Piece-work System — "Profit- 
sharing Means Permanent Employees," says this Executive 
—Think! 

III. Pointers on System 110 

A File within a File — For the Office Employee — The Filing 
System — How Perforations Enable One to Instantly Locate 
a Misplaced Card — Fifing Facts — "My Partner, the Tick- 
ler" — Apply the Aquaphone Test to Your Organization — 
An Error-proof Receiving System — A Simple System Cover- 
ing Shipments Returned for Credit — How Henry Brooks 
Gained a $10 Raise in Pay — The Case of Melton, the Man 
Who Lacked Originality — Scientific Management and Its 
Results — Standardizing — Packing Economies — Rules for Re- 
ceiving-rooms — Inter-Departmental Mail Service Saves Labor 
— "An Efficiency Expert Is Merely a Piece of Cheese" — ■ 
Toward Efficiency— A $13,000-a-year Idea— Too Much 
System — This Executive's Plan for a Proper Distribution of 
His Time — "Graphs" and Their Usefulness. 

IV. For the Accountant 138 

Saving Labor in Bookkeeping — Tips for Your Traffic Depart- 
ment — Efficiency in Filling and Billing Orders — A Penny 
Saved is a Penny Earned — "Mark a Definite Due Date on 
Your Bills; It Means Quicker Collections," says this Man — 
A Daily Trial Balance Saves Worry and Labor — New Ideas 
in Cost-keeping — A Series of Collection Letters — What a 
Traffic-man Discovered — Trade Acceptances: a Forward 
Step — A Short Cut in Accounting — Card Ledgers: Time- 
and Labor-savers. 



CONTENTS 

CHAP. PAGE 

V. Toward Efficiency 156 

A Chairless Office Conserves This Man's Time — "Don't Lock 
Up Your Desk," is a Rule of this Office — Saving Time in 
Figuring Postage on Parcel Post — Reducing Freight Charges 
— The Tendency of the Times — The Value of Business Read- 
ing — "Don't Carry Your Coals to Newcastle," says this 
Successful Young Executive — Foresight: Its Value in 
Launching New Enterprises — How One Man Secured a 
Promotion — $150,000 for Information — What Analysis Has 
Done for Modern Business — Getting the Right Attitude — 
Heat, Ventilation, and Efficiency — Are You Availing Your- 
self of This Institution's Facilities? — Commercial Abbrevi- 
ation in the Export trade — The Government's Pamphlets 
on Business — Methods, Not Money, Win Success — How the 
Bureau of Standards Serves the Business Man — Why the 
Business Man Should Understand Economics — Overstock- 
ing -f- Poor Accounting 4- Quality Stock = Failure — 
Is Your Business Suffering from Arterio-sclerosis? — Job 
Analysis in Modern Industrial Plants — How a Bank Can 
Help a Young Business Man — "Most Concerns are Over- 
stocked," says this Business Man — Centralization : The Mod- 
ern Tendency in Business — A Problem in Organization — 
The Work of the United States Bureau of Standards — 
Why a Shorter Work-day Increases Production. 



FOREWORD 

Many of the articles in this volume were previously 
published in the New York Evening World and other 
newspapers, under the title, " Dollars and Sense.' 7 It 
is in response to the requests of readers that they 
are republished in book form, together with several 
which now appear in print for the first time. 

From messenger to manager, the writer has sought 
to touch upon the needs of every one in the office. 
Stenographers and typists will find more than a score 
of articles devoted to their interests. 

Needless to say, the volume makes no pretense at 
being a comprehensive treatise upon office work or 
management. But the pointers offered are culled from 
every-day experience and possess the merit of being 
thoroughly practical. 



MODERN METHODS IN 
THE OFFICE 



MODERN METHODS IN 
THE OFFICE 



TYPING AND CORRESPONDENCE 

Typing Signatures Prevents Trouble 

" Fifty years ago a good handwriting was a valu- 
able asset for a young man/' said a local office manager. 
" Every l Help Wanted ' ad. demanded legible handwrit- 
ing as a requisite for clerical jobs. The result was that 
our forebears developed a beautiful, clear chirography. 
They had to. An illegible handwriting was a distinct 
handicap in business life. It meant danger of serious 
errors in transactions conducted through the mail. 

" Chirography, however, is now well-nigh a lost 
art. The present generation sees no necessity for 
developing a clear handwriting, because of the om- 
nipresent typewriter. The result of this attitude is 
that millions of business men actually cannot sign 
their names so that one can read them. 

"We have had considerable trouble right here be- 

l 



MODERN METHODS IN THE OFFICE 

cause of this fact. Many of our executives are lament- 
ably weak in chirography. For a long time, letters 
in answer to our correspondence arrived addressed to 
names which were never represented on our pay-roll. 
The recipient had been forced to make a wild guess 
at the writer's signature. 

"A very simple idea has obviated the trouble. Now 
every letter which leaves here contains the full name 
of the dictator, typed in the lower left-hand corner, 
with the stenographer's initials beneath it; this in 
addition to the signature. I expect to see this idea 
universally adopted in business correspondence." 

Renewing Typewriter Ribbons 

"In a large office," said an office manager, "the 
cost of typewriter ribbons is a significant item. 

"It occurred to me one day that there must be con- 
siderable life left in the old ribbons which are dis- 
carded as worn out. 

"I tried the experiment of inclosing them in a re- 
ceptacle with a wet sponge. The dried ink thus be- 
came dampened. Upon reinserting the ribbons in the 
machines, it developed that they had taken a new lease 
of life. This plan serves to materially lengthen the 
life of ribbons and substantially reduces this expense 
factor." 

Measuring Typed Matter 

"Our typists are paid by the square inch," said an office 
manager who is in charge of several score operators. 



TYPING AND CORRESPONDENCE 

"This necessitates the measuring of all work turned 
out. Formerly I used an ordinary rule for this pur- 
pose, but have recently adopted a' very simple device 
which I saw in use elsewhere. It consists of a trans- 
parent celluloid sheet which is divided into half- 
inch squares by the use of indelible-ink lines. Each 
square contains a number representing the total 
area to that point measured from the top and left 
margin. 

"Thus, by merely laying the sheet over the type- 
written matter, taking care that it just registers cor- 
rectly with the top and left margin of the latter, the 
total area is indicated by the figure appearing in the 
square which covers the lower right-hand corner. 
Simple, isn't it? 

"Then, by allowing five square inches for ad- 
dressing the envelope, inserting the date, name, 
address, salutary and final line, the total area in 
inches to be credited to the employee is easily de- 
termined. 

"A still better plan, however, and one which I 
intend to install, is to equip each machine with a 
cyclometer which registers the number of strokes. 
This insures absolute accuracy and saves labor in 
measuring each piece." 

Increasing the Life of Carbon Paper 

"What in the world are you doing that for?" in- 
quired the new stenographer, as the girl at the next 
desk stood by the steam-pipe and slowly rubbed the 



MODERN METHODS IN THE OFFICE 

uncoated side of a carbon sheet over the warm 
surface. 

"This carbon is nearly worn out," was the reply. 
"It has begun to render very dim impressions. Ap- 
plication of heat to the back moistens the carbon 
on the front; it gradually distributes itself over 
the surface and, after it dries, it gives a sharp 
impression again. This method increases the life 
of a sheet of carbon paper about twenty-five 
per cent." 

How to Improve a Business Letter 

The correspondents of a large Western concern 
are provided with the following printed sheet of 
instructions. These instructions are sufficiently 
general in character to apply to all business houses. 



Instructions to Our Correspondents 

1. Don't use a long or big word where a short one will do as 
well or better. For example: "begin" is better than "commence," 
"home" or "house" better than "residence," "buy" better than 
"purchase," "live" better than "reside," "at once" better than 
"immediately," "give" better than "donate," "start" or "begin" 
better than "inaugurate." 

2. Carefully avoid such words and stock phrases as "beg to 
acknowledge," "beg to inquire," "beg to advise," etc. Don't 
"beg" at all. 

3. Don't "reply" to a letter; "answer" it. You answer a letter 
and reply to an argument. 

4. Don't say "inclosed herewith." "Herewith" is superfluous. 

4 



TYPING AND CORRESPONDENCE 

5. Don't say " kindly " for "please." Avoid "the same" as 
you would a plague. 

6. Don't write "would say." Go right ahead and say it. 

7. Be wary of adjectives, particularly superlatives. "Very," 
"great," "tremendous," "excellent," etc., have marred many an 
otherwise strong phrase and have propped needlessly many a 
good word all-sufficient of itself. 

8. Don't try to be funny. 

9. Carefully avoid even the appearance of sarcasm. 

10. Never use the first personal pronoun "I" when writing as 
this company. "We" is the proper pronoun. Where a personal 
reference is necessary, "the writer" may be used; but even this 
should be avoided wherever possible. 

11. There are some common grammatical errors so inexcusable 
that no letter bearing the signature of this company ever should 
show them. "We was" should be cause for dismissal. 

12. Don't forget that certain small words are in the language 
for a purpose. "And," "a," "the" are important, and their 
elimination often makes a letter bald, curt, and distinctly in- 
elegant. 



Office Time-savers 

"Here are a couple of time- and money-saving de- 
vices which we have recently applied/' said the man- 
ager of a concern which, in addition to its regular sales, 
does a large mail-order business. 

"In making carbon copies of an outgoing correspond- 
ence — which, by the way, we have concluded is much 
cheaper and more effective than using even the most 
modern type of letter-press — we were accustomed to use 
one sheet of paper for each page copied. Now, in case 
of a two-page letter, we use both sides of the copying- 



MODERN METHODS IN THE OFFICE 

page, thus cutting our stationery bill for this item in 
half. 

"Also we use a different-color paper for the carbon 
copies of the correspondence of different departments. 
This results in a great saving of time in looking up 
correspondence. ' ' 

How Daisy Bennett Obtained a Merited Promotion 

"So Grace Stephens is going to get married," 
reflected Daisy, thoughtfully, on the morning that 
Miss Stephens, the head stenographer, arrived, 
proudly displaying a gleaming solitaire. "That 
means that one of us girls will be promoted to her 
position. I wonder which of us it will be. It 
means an increase of five dollars a week — five dol- 
lars which I could use very satisfactorily. I be- 
lieve I'll make a play for it myself," and Daisy 
sailed into her notes with renewed vigor, postpon- 
ing a consideration of ways and means for a leisure 
moment. 

"The more I'm worth to the concern the more 
they're going to pay me," mused Daisy at lunch 
that day. "I'll wager I can find a lot of waste and 
inefficiency around that office if I really try. With 
our staff of twenty girls, a little saving here and 
there will amount to a lot in the monthly balance 
sheet." And Daisy returned to the office, deter- 
mined upon unearthing some money-saving oppor- 
tunities. 

"What do we spend for typewriter ribbons in a 

6 



TYPING AND CORRESPONDENCE 

month?" inquired Daisy of the cashier a day or two 
later. 

" About thirty-five dollars/ ' was the reply. 

Daisy did a little investigating during her lunch 
hour the following day. 

In the afternoon, while taking dictation from the 
general manager, she remarked: 

"Mr. White tells me that we girls spend thirty-five 
dollars a month for typewriter ribbons. I have a plan 
for reducing that expense a half." 

"What is it?" inquired Hammond, pleased and sur- 
prised at this evidence of initiative on the part of a 
subordinate. 

"I understand that the office is to be equipped with 
new machines," said the girl. 

"Yes, we're considering the question right now," 
agreed Hammond. 

"If you'll buy machines with two-color attach- 
ments and insert a one-color ribbon, we can set 
the machine for black, using the top half of the 
ribbon; then, when that's worn out, set it for red 
and run the ribbon through again. Our present models 
have no two-color attachment; the type strikes in 
the center and the ribbons last only about two 
weeks." 

"A mighty good idea," exclaimed the superior, 
studying his stenographer with renewed interest, 
"and one that had never occurred to me. There's 
a saving of two hundred and ten dollars a 
year just from the exertion of a little common 
sense." 



MODERN METHODS IN THE OFFICE 

When the new machines were installed, a week later, 
they included two-color attachments. 

Some days later Daisy remarked: 

"By the way, Mr. Hammond, I think that we're 
wasting money on carbon paper. We obtain it in 
full-sized sheets, although much of it is used on 
half-sheets and telegram blanks. After it is used a 
few times a sheet is discarded, even though a large 
proportion of its surface is fresh. Can't we obtain 
it in half-sheets and full sheets? Then we'll be 
sure that none of it is wasted; that every sheet is 
thoroughly used before being thrown in the waste- 
basket." 

"A very good suggestion," replied the boss. 
"I'll speak to White about it." And thereafter 
the carbon paper was bought according to Daisy's 
plan. 

The girl felt encouraged by this ready response to 
her suggestions, and became more interested in finding 
methods of saving time and money. 

Every few days she propounded a new one. 

Once it was the substitution of printed reply blanks 
to be filled in for acknowledgment of orders, instead 
of writing a separate letter in each case. This saved 
the labor of two girls. They were transferred to an- 
other department. 

Again it was the substitution of fountain pens 
in the accounting department. This meant elimi- 
nation of "lost motion" in the constant dipping of 
pens. 

In another case it was the utilization of both sides 

8 



TYPING AND CORRESPONDENCE 

of the second sheet in making carbons, saving half the 
cost of writing-paper. 

And so it went. In a few weeks' time her ideas 
had effected an annual saving amounting to her 
salary. 

Upon Miss Stephens's resignation, two months later, 
she was elevated to the position of head stenographer, 
and her envelope contained just double her previous 
wage. 

Office Economies Which Are Worth While 

To buy typewriter ribbons in quantity means a sub- 
stantial discount. But, on the other hand, many an 
office manager has discovered that, unless carefully 
preserved, they rapidly deteriorate through becoming 
dry. 

Here is a method of insuring the preservation of 
ribbons for an indefinite period. Place them in a tin 
box provided with a lock and key; line the bottom of 
the box with a pad of cotton batting incased in a 
covering of cheese-cloth. Soak the pad with glycerin, 
then, after placing the ribbons in the box, lock it up. 
This will keep the ribbons fresh and moist. 

As the pad becomes dry, treat it from time to time 
with applications of glycerin. 

In offices where a large force is employed, pencils 
run into money. The use of metal pencil-holders will 
save money on this item. Instead of supplying the 
staff with pencils in their original form, cut them in 
two and have them insert a half-pencil into their 



MODERN METHODS IN THE OFFICE 

holders. Then every inch of pencil will be used before 
the pencil is thrown away. 

One office manager was puzzled to account for the 
enormous consumption of penholders. Investigation 
disclosed the fact that the metal barrel of the model 
he had been purchasing soon became so rusty that 
the pen could not be easily removed. The penholders 
were broken in the tussle that ensued to remove the 
pen. 

He purchased a more expensive holder, one 
with a cork grip and an automatic ejector. This 
proved to be a money-saver. The b demand for pen- 
holders decreased 80 per cent., far more than off- 
setting the increased investment in the improved 
model. 



For the Stenographer Who Seeks Efficiency 



(C 



When I have to make erasures on the original 
sheet and carbons are beneath it, I avoid smudging 
the carbons by placing a rule under the original along 
the platen," says one typist. 

"If, as often happens, certain data are required 
upon carbons which it is desirable to eliminate from 
the original, I avoid two operations by a simple 
method," she added. "By placing an extra small 
sheet over the face of the original and then typing 
the necessary data upon this slip, the carbons 
register and that portion of the original remains 
blank." 

"As it happens," said another stenographer, "my 

10 



TYPING AND CORRESPONDENCE 

educational opportunities have been superior to those 
of the other girls in our office. My suggestion that I 
proof-read all outgoing correspondence for the pur- 
pose of correcting errors in spelling and punctuation 
delighted my employer. He has developed the idea 
even further by installing a bulletin-board upon 
which repeated errors are posted, with the name of 
the girl making them appended. This plan has re- 
sulted in greatly increased accuracy among our office 
force and is gradually raising the standard of edu- 
cation." 

"When making carbon copies/ ' said another typist, 
"I found that often the carbon sheet would become 
wound about the roller of the machine, thus becoming 
torn. By binding the sheets of paper together with 
a clip after their insertion in the machine, I now avoid 
this difficulty." 

"Often our mail directed to points abroad would 
get away bearing only domestic postage," said one 
typist. "To avoid this I adopted the practice of 
writing the word 'Foreign' in the upper right- 
hand corner of the envelope at the time of typing 
it. This solved the difficulty, and at the same 
time saved the mailing department much time and 
worry. 

"When making four or five carbon copies of a letter 
or document," she added, "I tear off the top right- 
hand corner of each carbon. Then, after extracting 
the sheets from the machine, by holding the top right 
corner between the thumb and forefinger and giving 

the sheets a slight shake, the carbons promptly drop 

11 



' 



MODERN METHODS IN THE OFFICE 

out, thus saving the trouble of handling each sheet 
individually/ ' 

"My employer was much pleased," said another 
typist, "at an idea I suggested some time ago. It was 

merely to type in caps the words l not over dollars ' 

on the line intended for the signature on his checks. 
This device affords complete protection against raising 
the amount, as to tamper with my typed words would 
mean defacing the signature, which would render the 
check void." 



Tips for Typists 

"Here are a few pointers which I've picked up in 
the course of the day's work," said a competent 
typist. "Possibly they'll be of value to my fellow- 
craftsmen. 

"I have found that pins are safer to use in fastening 
papers together than patent clips. Clips have an un- 
fortunate faculty of annexing everything in their 
vicinity. Several valuable papers have been mislaid 
in our office in this way. In using pins, I take pains 
to see that the point is passed back through the top 
paper, thus avoiding danger of its sticking any one 
using our files. 

"I have discovered that in making a neat job of 

erasures there is a right way and a wrong way. I use 

a pencil-eraser first to remove the top surface of the 

paper; then I use the typewriter eraser, blowing the 

dust off at frequent intervals. 

"When I have a line in a letter which is to be under- 

12 



TYPING AND CORRESPONDENCE 

scored clear across the page, instead of striking the 
underscore key fifty or sixty times, I shift the carriage 
and lock it. Next I press the underscore key down 
until it touches the paper. Then with my left thumb 
I press the type bar against the ribbon and with the 
other hand release the carriage. It runs quickly across 
the page, leaving a clean black line. Not only does 
this method save time, but it results in a neater job. 

" Occasionally I find it necessary to use a copy rib- 
bon. To avoid the necessity of removing the regular 
ribbon at such times, I attach a two- or three-foot 
length of copy ribbon to each regular ribbon when 
the latter is inserted in the machine. Then when 
the copy ribbon is required it is a simple matter to 
turn the ribbon reverse until the copy ribbon ap- 
pears. 

" Often I am given reports to write on sheets which 
are wider than my typewriter carriage. In a case 
like this I fold the paper vertically. Then I insert it 
in the machine and type across to the fold. I then 
skip enough of the text to just fill out the folded por- 
tion and start on the next line. After the sheet is 
covered, I remove it and reinsert it with the previously 
concealed portion visible. It is a simple matter to 
fill out the lines with the portion of the text originally 
omitted. 

"To conclude: Weekly I thoroughly clean my ma- 
chine, oil it, adjust the tension, polish all the nickeled 
portions, and apply a cleaning polish to all the black- 
enameled surfaces. To-day my machine, which has 
been in constant use for two years, looks as though 

13 



MODERN METHODS IN THE OFFICE 

it had just come from the factory. That this policy 
pleases my employer goes without saying." 



Letters — Their Physical Appearance 

For years advertising-men have wrangled over the 
question as to which was the most important feature 
of a newspaper advertisement — the copy or the dis- 
play. As a matter of fact, each is so important that 
they can hardly be considered apart. No matter how 
convincing the copy may be, a poorly displayed 
"ad." will not pull results, because it will not be read. 
On the other hand, if the copy is weak, the "ad." 
will fail, no matter how striking the display. In ad- 
vertising, then, display and copy are equally potent 
factors. 

The physical appearance or display of a letter is a 
vital element in its pulling power. Although not quite 
so important as in newspaper advertising, it is a feat- 
ure which should receive careful attention. And yet 
how seldom does one receive a business letter which 
is beyond criticism in this respect. 

Generally the margins are inadequate, the letter is 
not properly centered on the page, the right-hand 
margin is ragged in the extreme. Two and a quarter 
inches is none too much for marginal display. Few 
typists allow more than an inch and a quarter. If a 
letter is short, it should not be bunched at the top of 
the page, but carefully centered — equidistant from the 
top and bottom. As for spacing, the tendency to-day 
is toward single spacing between lines, with a double 



14 



/ 

TYPING AND CORRESPONDENCE 

space between paragraphs and no indentation for the 
latter. We are reproducing a form which is becom- 
ing increasingly popular among progressive business 
houses : 



Punctuation is another weak spot with the average 
typist. The best usage to-day prescribes as little as 
possible. Here Timothy Dexter proved himself to be 
a century ahead of his time. He wrote a book, you 
may remember, which had not a sign of punctuation. 



15 



MODERN METHODS IN THE OFFICE 

The last page, however, contained a miscellaneous as- 
sortment of commas, colons, hyphens, etc., with the 
request that the reader insert them where he pleased. 

Quotation marks are used in hundreds of cases 
where they're not needed. In referring to a magazine, 
for example, as The International Review, the average 
typist inserts quotation marks. Capitals are sufficient. 

I am inclined to hold the employers responsible for 
the poor appearance of the average letter. Ten min- 
utes' instruction should be enough to post a typist 
on the proper procedure. In order to insure uniformity, 
up-to-date firms issue printed instructions to their 
typists. Those given below are copied from one firm's 
book of instructions. 

City and date must be written about three spaces 
below the lowest printed matter on letter-head, as 
follows: Boston, date single space below, regulated 
so that it will precede and extend beyond " Boston" 
an equal distance, the end of the date being in line 
with margin of body of letter; spell the month in 
full, followed by the date in figures, after which use 
comma; add year in figures and end with period. 

Paragraphs must begin ten points from margin 
on a line with city. Use single space, with double 
space between paragraphs. 

In closing use the phrase "Yours very truly" and 
sign "The Jones Company." Have correspond- 
ent's and stenographer's initials on line with margin 
on left-hand side of sheet. Margins must be regu- 
lated by length of letter to be written, using your 

judgment in this respect. 

16 



TYPING AND CORRESPONDENCE 

The half-size letter-head should be used for very 
short letters. 

Envelopes must be addressed double space, with 
beginning of name, street, address, city, and state on 
marginal line. 

How to Obtain Good Duplicates and Triplicates on 

a Typewriter 

"In making out triplicates many typists have diffi- 
culty in securing perfect alignment on the copies,' ' 
said one operator, recently. "The carbons are likely 
to be a shade above or below the line. Here is a plan 
which obviates this difficulty. 

" Before inserting the sheets, push the lever which 
operates the paper release. Then slip in the sheets, 
being sure that they coincide. Following this, snap 
the release back into position, and you'll find that your 
carbon copies are in perfect alignment; in other words, 
the type strikes on, rather than over or under, the 
horizontal lines." 

Carbon Copies vs. Press Copies — 
Plain Envelopes vs. Window Envelopes 

The findings of the Commission on Economy and 
Efficiency appointed to overhaul the business methods 
in vogue in the government departments at Wash- 
ington also have a very direct application to private 
business. 

In comparing the two methods of reproduction 

17 



MODERN METHODS IN THE OFFICE 

named in our title, the commission's verdict was 
unanimously in favor of the former. 

To press-copy 1,000 letters cost $2.80 in materials 
alone; 1,000 carbon copies cost but 56 cents, the net 
saving to be credited to the latter method amounting 
to $2.24 a thousand. Other advantages of the carbon 
copies are adaptability for riling, neater originals, con- 
venience in handling copies later, and readiness for 
immediate mailing of the original. 

Another point thoroughly covered by the commis- 
sion was the question of window envelopes. It de- 
veloped that the expense of addressing envelopes came 
to $6.50 per thousand. The new-style envelope cost 
but 60 cents a thousand more than the opaque forms 
— in many sizes but 30 cents a thousand more. The 
saving came to $5.90 per thousand, thus making an 
annual total saving of $102,907 on the 17,442,000 
envelopes used yearly. 

The commission admits that on a few classes of 
correspondence the use of the window envelope is 
impracticable. But these have been deducted in their 
estimate of total possible saving. 

Dictation by Telephone 

"Our department managers have considerable cor- 
respondence to get out in the course of a day," said 
the efficiency man of a great department store, "but 
not enough to warrant the assignment of a girl's en- 
tire time to each manager. Consequently, when- 
ever a stenographer's services were required we 

18 



TYPING AND CORRESPONDENCE 

despatched one from the correspondence depart- 
ment. 

"It developed, however, that very often interruptions 
delayed the progress of the work. A salesman might 
call, or the department manager's presence be required 
at the main office; sometimes a girl would consume a 
couple of hours in receiving a half-dozen letters. 

"'Why not transact this business over the 'phone?' 
I reflected, one day. 'By keeping the girls right here, 
they could be engaged in routine work constantly, 
except when actually needed for dictation. Further- 
more, it would save the time required in going to and 
returning from the department manager's desk.' 

"The new system has worked perfectly. Now the 
girls are constantly engaged in actual productive labor. 
When an executive wants to get out some letters, he 
calls up the central office, is connected with a stenog- 
rapher, and rattles off his correspondence. In case he 
is interrupted, she can proceed with her typing until 
she is needed again. And no time is wasted in walking 
long distances through the store." 

A New Wrinkle in Business Correspondence 

"Here's a new one on me," remarked a local business 
man as he tossed the writer a letter. 

"Note that directly under the date they've typed 
the phrase, 'Replying to your letter of Aug. 21st.' 

"A good idea I call it. It removes that stereotyped 

interest-killing phrase from the initial portion of the 

body of the letter, and yet, by its presence, assures 
3 19 



MODERN METHODS IN THE OFFICE 

that no confusion will result from lack of data as to 
just what the writer is talking about." 

In concluding a letter, says an office manual, avoid 
stereotyped forms: 

Example: " Awaiting your reply with interest." 

Or: 

" Trusting that we shall be favored with your 
order," etc. 

Say, instead: "It is not simply because we want the 
order that we are anxious to send you these goods. 
That's one reason, of course; but we want most to 
show you what complete satisfaction buying from us 
really means. You have our Style Book. Do not lose 
this opportunity." 

Or: 

"The coat you have asked about is one of our most 
beautiful models, and it is one of our best values, too. 
You could not make a better selection." 

As regards the physical appearance of letters, the 
following pointers are valuable: 

Quotations: When a paragraph is quoted in the 
body of the letter, both right and left margins of the 
quoted paragraph must be indented at least five spaces 
further than the regular paragraphs. 

Quotations should be single spaced; quotation marks 
should not be placed before each quoted paragraph, 
but only after the last. 

When an original letter is quoted in a follow-up 

letter, do not inclose the quoted letter in quotation 

marks. 

20 



TYPING AND CORRESPONDENCE 

Specific instructions for side margins. 

For example: 

The left margin is controlled by the left marginal 
guide, which should be set at 20. There is no excuse 
for an uneven left margin. 

The right margin depends upon the words ending 
the line. In attempting to keep this margin even, 
it is often necessary to divide a word of several sylla- 
bles, placing the last part on the next line. 

To further assist you to keep this margin even, the 
following facts should be observed: 

Under no circumstances let the line extend beyond 83. 
Better stop at 76 than at 85. 

Better divide a word at 76 (or up to 83, of course) 
than to extend to 84. 

Place the right margin guide at 80; this causes the 
bell to ring at 75. 

If necessary to go beyond 80 (up to 83), press the 
right release key. 

Saving Typists' Time 

"It is surprising how much time is saved by an 
improvement involving but a fraction of a second if 
the process is repeated often enough/' remarked a 
typist. 

"We do a tremendous amount of circularizing in 
this office. Here is a little device which has proved 
practicable. Instead of inserting but one envelope, 
addressing it, and removing it, we insert an envelope 
to a point represented by turning the platen six spaces ; 

21 



MODERN METHODS IN THE OFFICE 

then insert another, again turning the platen six times, 
and continue this until the first envelope is properly- 
located for addressing. 

"We then address it with a vertical left-hand margin 
and remove it. Another envelope is then inserted, and 
turning the platen brings the second one into position. 
By repeating this process indefinitely a constant chain 
of envelopes passes through the machine. The saving 
of time comes in the fact that the platen is not turned 
clear to the center of the envelope for each one ad- 
dressed. Actual tests of the old and improved methods 
have demonstrated that a substantial saving of time 
is effected by the latter during a day's work." 

Is Your Business Correspondence Up-to-date? 



u 



Within the past few years I have noted a great 
change taking place in business correspondence," re- 
marked an office manager. "Instead of feeling obliged 
to adopt a quasi-legal phraseology freely interspersed 
with polysyllables, people are beginning to write as 
they speak — simpfy, and directly to the point. 

"I ran across some data bearing on the subject, 
recently, which impressed me so favorably that I 
embodied it in a bulletin to be distributed to our cor- 
respondents. Here are some of the items: 

Do not say, "We wish to acknowledge the receipt of your es- 
teemed communication. " You should say, "We are glad to receive 
your letter." 

Do not say, "We trust the dress is in your possession ere this." 

You should say, "We hope you have received the dress." 

22 



TYPING AND CORRESPONDENCE 



Words, Expressions, etc., Not to Be Used 

For example: 

Do not Say: Say, Instead: 

Inclosed herewith Inclosed (simply) 



At the present time. At present. 



Two pair. 



Two pairs. 



This quality goods This quality of 

goods. 



The demand for these There has been a 
goods has been great- great demand for 
er than we looked for. these goods. 



You are due us $2, or There is a balance of 

we are due you, etc. $2 due us, etc. 

Your favor (or com- Your letter (postal 

munication) has just card, telegram) has 

reached us. just reached us. 



We shall try to always We shall try always 

please you. to please you. 

23 



Reason : 
Inclosed can mean 
only herewith. 

The and time are 
unnecessary. Avoid 
unnecessary words. 

The plural of pair is 
pairs. 

In the first sentence 
quality is used as an 
adjective when it 
should be a noun. 
The first expression 
would indicate that 
we did not expect 
much of a demand, 
and it would not, 
therefore, be good 
salesmanship. 

Due us, in this con- 
nection, is not good 
usage. 

Favor or communi- 
cation is not good. 
Some years ago favor 
implied a delicate 
compliment, but it 
has been so constant- 
ly used that this 
meaning has been 
lost. 

Avoid split infini- 
tives. 



MODERN METHODS IN THE OFFICE 



You can make no mis- 
take in selecting eith- 
er of the three. 

We a^e anxious to 
know if you found 
everything satisfac- 
tory. 

You have had the 
goods quite some 
time. 

Our goods are differ- 
ent than others. 

We extend you our 
apologies. 



We beg to acknowl- 
edge receipt of your 
order, etc. 



You can make no 
mistake in selecting 
any one of the three. 

We are anxious to 
know whether (or 
not) you found 
everything satisfac- 
tory. 

You have had the 
goods a considerable 
time. 

Our goods are differ- 
ent from others. 

We apologize. 



We acknowledge 
(with pleasure) the 
receipt of your or- 
der. 



Either must not be 
used in referring to 
more than two. 

Do not use if in a 
subordinate clause in 
the sense of whether. 



Quite some, quite a 
few, etc., are not in 
good usage. 

Avoid different than, 
say different from. 

Extend means to 
stretch out. It should 
seldom be used as a 
synonym of give. 

Beg should never 
be used in this con- 
nection. 



Just as soon as we Just as soon as we At once is unneces- 

hear from you we hear from .you, we sary with just as 

shall send your goods shall send 3^ our soon as. 

at once. goods. 



Our usual perfect ser- 
vice. 

On March 28th we 
wrote you stating that 
the dress you returned 
has not been received. 



Our usually perfect 
service, or, our usual, 
perfect service. 

On March 28th we 
wrote you that the 
dress you returned 
had not been re- 
ceived. 

24 



An adjective cannot 
modify another ad- 
jective. 

Wrong sequence of 
tenses. Do not use a 
present perfect tense 
with a verb denoting 
completed action in 
past time. 



TYPING AND CORRESPONDENCE 

Cutting Correspondence Costs 

"When I joined this organization some months ago/' 
said an office manager, "a force of correspondents 
was employed chiefly for the purpose of acknowl- 
edging receipt of orders. Each letter was personally 
dictated. 

"Upon going through the files, I discovered sufficient 
similarity among the letters to warrant the hope that 
a plan of using stock paragraphs might be applied 
which would result in the entire elimination of dic- 
tation. 

"It was easy to divide the letters into types. Some 
were mere acknowledgments without further comment ; 
others involved an explanation as to why some of the 
shipment was omitted; others covered cases in which 
none of the goods required was in stock; others dealt 
with remittances which were more or less than the 
sum required. 

"It was a simple matter to prepare stock letters ap- 
plying to these instances. Naturally, in the para- 
graphs referring to the peculiar factors involved in 
the particular order referred to, a space was left for 
the insertion of the proper words or figures. 

"Now a letter goes to the typist with a slip attached, 
reading perhaps as follows: 

1 llth 

28 2 boxes, 18 by 24, dble. 2nd Am. 

94 
6 

25 



MODERN METHODS IN THE OFFICE 

The typist thereupon writes as follows: 



td 



Gentlemen: 

Your valued order of the 11th was received to-day. 

We are shipping by freight your order as requested, with the ex- 
ception of the omission of 2 boxes of 18 by 24 dble. 2nd American. 
Our warehouse reports a shortage of this size and we shall forward 
this item upon receipt of same from the factory, unless .you notify 
us to the contrary. 

We are confident that the quality of the shipment will please you 
and we hope that you will call upon us whenever in need of glass. 

Thanking you for the order and hoping to hear from you again 
soon, we remain 

Very truly yours. 

"The method of procedure is, of course, self-evident. 
The typist referred to her book of forms, selected para- 
graphs 1, 28, 94, and 6, and that was all that was 
required. 

"This plan permits us to substitute eight-dollar-a- 
week typists for fourteen-dollar-a-week stenographers. 
Also it has reduced our correspondence staff seventy- 
five per cent. 

"Now I am evolving a plan whereby we can use 
actual form letters filled in where necessary, thus still 
further reducing the labor of typing. 

"By the use of the original ribbon used in making 
the form letter and the adoption of a method of repro- 
duction which is far superior to ordinary duplication 
I believe that this will prove to be practicable." 

26 



TYPING AND CORRESPONDENCE 

For the Stenographer 
The following is quoted from an office manual: 

Inserting Carbon 
When inserting carbon between sheets of paper, place it half 
an inch from the top and left side of the sheet of paper so that 
when the letter has been written you can remove the carbon with 
the right hand, holding paper with the left. 

Erasing 

When erasing over carbon, take a blotter and insert it under the 
sheet on which } r ou are erasing, but over the carbon sheet. Then 
erase, and the blotter will prevent the carbon from smudging. 
This also prevents the wearing out of the carbon paper in spots. 

Use a pencil eraser first when erasing, and then finish with a 
typewriter eraser. This makes a very clean erasure, for the pencil 
eraser takes off the first coat very neatly. 

Underscoring 
When underscoring two or more characters, always lock your 
shift-key. Then, while striking your underscore, run ribbon along 
by turning the ribbon-spool crank. 

Dating 

Change date at given hours. For example: 

The date must be placed in the upper right-hand side under 
the heading. The month is written in full, then the day, followed 
by a comma, and the year. Do not write "st" or "th," etc., after 
day of month. Do not place a period after the date. 

On ordinary business stationery, 8j^ by 11 inches, the end of 

the date-line is to come as nearly as possible at 80. To accomplish 

this, the following scale has been arranged: in the months from 

September to February begin the date at 64; from March to 

August at 07. 

Letters transcribed up to 4 p.m. are to be given the date of 

27 



MODERN METHODS IN THE OFFICE 

transcription. All letters transcribed after 4 p.m. are to be dated 
the following day. 

Letters returned for correction are to be corrected the same day, 
if possible. 

Estimating the Length of a Letter 

Special attention must be paid to centering the letter. In every 
instance the typewritten matter is to be as nearly as possible in 
the center of the page — that is, the space under the letter-head and 
the space beneath the letter should be approximately the same. 

No positive rule can be given with regard to the point at the 
top of the page at which the address and salutation are to be 
placed. It is a matter of careful judgment. 

The phonograph slip that accompanies the cylinder is a guide, 
though the dictation of different correspondents varies greatl}' 
in amount of typewritten matter. Some correspondents speak 
quickly and without hesitation, so a relatively small part of the 
cjdinder would be used. Hesitation, corrections, etc., also take up 
space. A correspondent's habits of dictation should be carefully 
considered before beginning to type. 

As a general rule, any letter occup3>ing less than five spaces on 
the slip is a "short letter," and is placed well down on the page. 
A letter using from six to twelve spaces is a " medium-sized letter" 
and is placed a little higher on the sheet. Any letter covering 
thirteen to twenty-five spaces is about a " full-page letter" and 
starts well up on the page. Any letter covering more than twenty- 
five spaces on the phonograph slip, in all probability, requires two 
sheets. 



A Simple Idea Increases this Stenographer's Speed 

"I have substantially increased my speed in taking 
dictation/' said a stenographer, "by drawing vertical 
lines down the center of the pages of my note-book. 
This means that upon coming to the end of a line I 
have less space to cover to reach the beginning of the 

28 



TYPING AND CORRESPONDENCE 

next line. Of course I cover as much space in the 
aggregate, taking a page as a whole, but that is not 
the point. 

"The delay incident to breaks involved in covering 
the entire width of the page in one motion is obviated 
and consequently my speed has shown a notable in- 



crease.' 7 



A Time-saver for Typists 

"Here is a simple idea which has substantially in- 
creased my output," said a typist, recently. "Up to 
a short time ago, I have always addressed the envelope 
at the time of writing a letter; this even though I 
had twenty or thirty letters to transcribe. 

"'Why not type the envelopes in succession either 
before or after the letters?' I reflected, the other day. 
'This will save the labor of readjustment for each en- 
velope.' 

"I now pursue this plan with a quite noteworthy 
saving of time and trouble. Applied to a large office, 
employing many typists, it should result in a sub- 
stantial increase of output." 

Pointed Paragraphs for Enterprising Typists 

Frederick P. Fish, who resigned a one-hundred- 
thousand-dollar-a-year position as president of the 
American Telephone and Telegraph Company, be- 
cause he could earn more in private practice, believes 
in giving credit where credit is due. 

"It seems a strange thing to say," he once remarked, 

29 



MODERN METHODS IN THE OFFICE 

"but I sometimes wonder if I could hold this position 
satisfactorily if it were not for my stenographer. 
She knows as much as, or more, about the routine and 
detail of my duties than I do; she lifts a vast mass 
of petty worries from my shoulders. Were it not for 
her actual genius for organization and her high degree 
of sheer executive ability I would have no time for 
the far-sighted planning which is the most important 
feature of my position." 

Doubtless there are many big figures in the business 
world who echo these sentiments. An alert, con- 
scientious stenographer is worth her weight in type- 
writers. Here are some pointers from one of this sort: 

"My employer's time is worth twenty dollars an 
hour/' she remarked, "hence any device which will 
save his time is valuable. I noted that in taking his 
dictation much time was consumed in obtaining the 
name and address of the person to whom the letter 
was going. This he always dictated slowly to insure 
absolute accuracy. 

"I suggested that he eliminate this feature; merely 
give each letter a number in the order of its delivery, 
and that I affix the name and address through reference 
either to the letter he answered or to the office files. 
By pursuing this policy a substantial saving of high- 
priced time is effected. 

"Here is another valuable wrinkle which I have 
found saves time and also improves the appearance of 
my letters. Often when typing a sheet I continued 
the text to a point too close to the lower margin. 
Lacking a gauge, this is likely to occur. By cutting 



TYPING AND CORRESPONDENCE 

a little rectangular hole near the lower edge of the 
carbon sheet I am warned of my approach to the proper 
point for ceasing typing. The hole shows through the top 
sheet as a light spot, thus acting as an effective gauge. 
" Finally, I have discovered a simple method of 
avoiding lost time and poor workmanship in cases 
where letters with their carbon copies must be removed 
from the machine before the sheet is completed. Often 
this occurs when a hurry-up job intervenes. To insure 
a certainty of a proper registration upon reinsertion, 
I fasten the top, carbon, and under sheets tightly to- 
gether with clips before removal from the carriage. 
This holds them securely in the proper relative posi- 
tion, so that upon being reinserted I can continue my 
work from the point I stopped, with no danger of 
producing a poorly executed carbon." 

A Carbon Copy Inclosed v/ith the Original Letter 

"Time is money — most emphatically so," said the 
proprietor of a concern which does a large export busi- 
ness. "And it is to save time that we have our typists 
make two carbons of every outgoing letter to foreign 
parts. One carbon copy goes in our files ; the other, on 
very thin tissue, bears the printed line, 'Kindly return 
this copy when you answer/ and is inclosed with the 
original letter. 

"When the reply arrives, it is not necessary to ex- 
pend valuable time in searching the files; the carbon 
of the letter which evoked the response is attached to 
the answer. 

31 



MODERN METHODS IN THE OFFICE 



a 



We figure that the saving of time greatly over- 
balances the negligible expense of the extra stationery 
and carbon paper. As for the typists, it is just as 
easy to make two carbons as one." 

Envelopes of Various Colors Serve to Simplify Sorting 

of Mail 

"Here's a time-saving device which we've recently 
developed," remarked a banker. 

"You see this stack of mail? Note the half-dozen 
different colors used for the envelopes. Most of our 
mail comes in return envelopes supplied by us. When 
we used white envelopes only, much time was required 
to sort the mail. Now we use a different color for 
each department. Deposits, transits, collections, 
credit inquiries, etc., each has its own distinctive color. 
A glance now serves to sort the mail. The saving of 
the cashier's time by this scheme amounts to a good 
many dollars in the course of a year." 

Efficiency Principles Eliminate Ten Typists 

"Much that I have accomplished here is of interest 
only to similar large establishments," remarked an 
efficiency engineer whose reforms have effected a 
saving of nearly two hundred and fifty thousand dol- 
lars per year in a great department store, "but here 
is one idea (which, by the way, I cannot claim to have 
originated) that can be almost universally applied. I 
refer to the use of stock paragraphs in correspondence. 

32 



TYPING AND CORRESPONDENCE 

"In tackling our correspondence problems, I began 
by making an analysis of our outward-bound letters, 
covering a considerable period. Practically every con- 
tingency arising, it developed, could be covered by an 
assortment of stock paragraphs comprising twelve be- 
ginnings, twenty-three endings, and forty short letters. 
This list I ordered typed, mounted on large cardboards, 
and placed on the desks of the correspondent and his 
typists. 

" Thereafter it was a simple matter for the dictator 
to read the incoming mail, jot down the figures applying 
to the stock paragraphs which would constitute the re- 
ply, and distribute the slips to the girls. This idea, which 
saves a vast amount of time, can be applied in some 
degree to the correspondence of almost every office. 

" Another time-saving device in letter- writing is to 
utilize form letters with a space left at the end of the 
lines to be filled in with the words which will make that 
letter directly applicable to the case of the recipient. 
These two simple measures, combined with a carefully 
studied and uniform arrangement of stationery in the 
desk drawers, thus eliminating all false motions, have 
resulted in the release of ten typists. 

"This means a cash saving of nearly four thousand 
dollars a year; not just tins year, remember, but for 
years to come. There is no reason why these methods 
should not be applied to thousands of offices, even down 
to the smallest. For even though a man employ but 
one typist, to reduce unnecessary labor in letter- 
writing will allow her time for other duties." 



f 



II 

PROBLEMS OF PERSONNEL 

Efficiency in the Office 

"When I tackled the problem of increasing the effi- 
ciency of our employees," said an office manager who 
is in charge of a staff of several hundred typists, "X 
realized that the point at which I could make the easiest 
and most spectacular showing would be that of selec- 
tion. 

" 'Start with good timber in the first place/ I argued, 
4 and you'll have a tremendous initial advantage/ 

"My first move, therefore, was to formulate a series 
of preliminary tests to which applicants for positions 
were subjected. Here is the method pursued at present. 

"First, I interview the girls, select those who appear 
to give promise, and to this group, which comprises 
but about fifteen per cent, of the total number of ap- 
plicants, I offer the opportunity of taking the exami- 
nation. About forty per cent. pass. Naturally, these 
tests vary with the nature of the work required. But 
all are set certain definite, concrete tasks to be accom- 
plished within a certain time limit. Those who suc- 
cessfully survive this ordeal are then told that they 

34 



TYPING AND CORRESPONDENCE 

"In tackling "our correspondence problems, I began 
by making an analysis of our outward-bound letters, 
covering a considerable period. Practically every con- 
tingency arising, it developed, could be covered by an 
assortment of stock paragraphs comprising twelve be- 
ginnings, twenty-three endings, and forty short letters. 
This list I ordered typed, mounted on large cardboards, 
and placed on the desks of the correspondent and his 
typists. 

"Thereafter it was a simple matter for the dictator 
to read the incoming mail, jot down the figures applying 
to the stock paragraphs which would constitute the re- 
ply, and distribute the slips to the girls. This idea, which 
saves a vast amount of time, can be applied in some 
degree to the correspondence of almost every office. 

"Another time-saving device in letter- writing is to 
utilize form letters with a space left at the end of the 
fines to be filled in with the words which will make that 
letter directly applicable to the case of the recipient. 
These two simple measures, combined with a carefully 
studied and uniform arrangement of stationery in the 
desk drawers, thus eliminating all false motions, have 
resulted in the release of ten typists. 

"This means a cash saving of nearly four thousand 
dollars a year; not just this year, remember, but for 
years to come. There is no reason why these methods 
should not be applied to thousands of offices, even down 
to the smallest. For even though a man employ but 
one typist, to reduce unnecessary labor in letter- 
writing will allow her time for other duties." 



II 

PROBLEMS OF PERSONNEL 

Efficiency in the Office 

"When I tackled the problem of increasing the effi- 
ciency of our employees/' said an office manager who 
is in charge of a staff of several hundred typists, "I 
realized that the point at which I could make the easiest 
and most spectacular showing would be that of selec- 
tion. 

" 'Start with good timber in the first place/ I argued, 
4 and you'll have a tremendous initial advantage.' 

"My first move, therefore, was to formulate a series 
of preliminary tests to which applicants for positions 
were subjected. Here is the method pursued at present. 

"First, I interview the girls, select those who appear 
to give promise, and to this group, which comprises 
but about fifteen per cent, of the total number of ap- 
plicants, I offer the opportunity of taking the exami- 
nation. About forty per cent. pass. Naturally, these 
tests vary with the nature of the work required. But 
all are set certain definite, concrete tasks to be accom- 
plished within a certain time limit. Those who suc- 
cessfully survive this ordeal are then told that they 

34 



TYPING AND CORRESPONDENCE 

a little rectangular hole near the lower edge of the 
carbon sheet I am warned of my approach to the proper 
point for ceasing typing. The hole shows through the top 
sheet as a light spot, thus acting as an effective gauge. 
" Finally, I have discovered a simple method of 
avoiding lost time and poor workmanship in cases 
where letters with their carbon copies must be removed 
from the machine before the sheet is completed. Often 
this occurs when a hurry-up job intervenes. To insure 
a certainty of a proper registration upon reinsertion, 
I fasten the top, carbon, and under sheets tightly to- 
gether with clips before removal from the carriage. 
This holds them securely in the proper relative posi- 
tion, so that upon being reinserted I can continue my 
work from the point I stopped, with no danger of 
producing a poorly executed carbon/ ' 

A Carbon Copy Inclosed with the Original Letter 

"Time is money— most emphatically so," said the 
proprietor of a concern which does a large export busi- 
ness. "And it is to save time that we have our typists 
make two carbons of every outgoing letter to foreign 
parts. One carbon copy goes in our files; the other, on 
very thin tissue, bears the printed line, 'Kindly return 
this copy when you answer/ and is inclosed with the 
original letter. 

'When the reply arrives, it is not necessary to ex- 
pend valuable time in searching the files; the carbon 
of the letter which evoked the response is attached to 
the answer. 

31 



MODERN METHODS IN THE OFFICE 

"We figure that the saving of time greatly over- 
balances the negligible expense of the extra stationery 
and carbon paper. As for the typists, it is just as 
easy to make two carbons as one." 

Envelopes of Various Colors Serve to Simplify Sorting 

of Mail 

"Here's a time-saving device which we've recently 
developed," remarked a banker. 

"You see this stack of mail? Note the half-dozen 
different colors used for the envelopes. Most of our 
mail comes in return envelopes supplied by us. When 
we used white envelopes only, much time was required 
to sort the mail. Now we use a different color for 
each department. Deposits, transits, collections, 
credit inquiries, etc., each has its own distinctive color. 
A glance now serves to sort the mail. The saving of 
the cashier's time by this scheme amounts to a good 
many dollars in the course of a year." 

Efficiency Principles Eliminate Ten Typists 

"Much that I have accomplished here is of interest 
only to similar large establishments," remarked an 
efficiency engineer whose reforms have effected a 
saving of nearly two hundred and fifty thousand dol- 
lars per year in a great department store, "but here 
is one idea (which, by the way, I cannot claim to have 
originated) that can be almost universally applied. I 
refer to the use of stock paragraphs in correspondence. 

32 



TYPING AND CORRESPONDENCE 

next line. Of course I cover as much space in the 
aggregate, taking a page as a whole, but that is not 
the point. 

"The delay incident to breaks involved in covering 
the entire width of the page in one motion is obviated 
and consequently my speed has shown a notable in- 



crease." 



A Time-saver for Typists 

"Here is a simple idea which has substantially in- 
creased my output," said a typist, recently. "Up to 
a short time ago, I have always addressed the envelope 
at the time of writing a letter; this even though I 
had twenty or thirty letters to transcribe. 

"'Why not type the envelopes in succession either 
before or after the letters?' I reflected, the other day. 
'This will save the labor of readjustment for each en- 
velope. ' 

"I now pursue this plan with a quite noteworthy 
saving of time and trouble. Applied to a large office, 
employing many typists, it should result in a sub- 
stantial increase of output." 

Pointed Paragraphs for Enterprising Typists 

Frederick P. Fish, who resigned a one-hundred- 
thousand-dollar-a-year position as president of the 
American Telephone and Telegraph Company, be- 
cause he could earn more in private practice, believes 
in giving credit where credit is due. 

"It seems a strange thing to say," he once remarked, 

29 



MODERN METHODS IN THE OFFICE 

"but I sometimes wonder if I could hold this position 
satisfactorily if it were not for my stenographer. 
She knows as much as, or more, about the routine and 
detail of my duties than I do; she lifts a vast mass 
of petty worries from my shoulders. Were it not for 
her actual genius for organization and her high degree 
of sheer executive ability I would have no time for 
the far-sighted planning which is the most important 
feature of my position/ ' 

Doubtless there are many big figures in the business 
world who echo these sentiments. An alert, con- 
scientious stenographer is worth her weight in type- 
writers. Here are some pointers from one of this sort: 

"My employer's time is worth twenty dollars an 
hour," she remarked, "hence any device which will 
save his time is valuable. I noted that in taking his 
dictation much time was consumed in obtaining the 
name and address of the person to whom the letter 
was going. This he always dictated slowly to insure 
absolute accuracy. 

"I suggested that he eliminate this feature; merely 
give each letter a number in the order of its delivery, 
and that I affix the name and address through reference 
either to the letter he answered or to the office files. 
By pursuing this policy a substantial saving of high- 
priced time is effected. 

"Here is another valuable wrinkle which I have 
found saves time and also improves the appearance of 
my letters. Often when typing a sheet I continued 
the text to a point too close to the lower margin. 
Lacking a gauge, this is likely to occur. By cutting 

30 



TYPING AND CORRESPONDENCE 

For the Stenographer 
The following is quoted from an office manual: 

Inserting Carbon 
When inserting carbon between sheets of paper, place it hali 
an inch from the top and left side of the sheet of paper so that 
when the letter has been written you can remove the carbon with 
the right hand, holding paper with the left. 

Erasing 

When erasing over carbon, take a blotter and insert it under the 
sheet on which you are erasing, but over the carbon sheet. Then 
erase, and the blotter will prevent the carbon from smudging. 
This also prevents the wearing out of the carbon paper in spots. 

Use a pencil eraser first when erasing, and then finish with a 
typewriter eraser. This makes a very clean erasure, for the pencil 
eraser takes off the first coat very neatly. 

Underscoring 
When underscoring two or more characters, always lock your 
shift-key. Then, while striking your underscore, run ribbon along 
by turning the ribbon-spool crank. 

Dating 

Change date at given hours. For example: 

The date must be placed in the upper right-hand side under 
the heading. The month is written in full, then the day, followed 
by a comma, and the year. Do not write "st" or "th," etc., after 
day of month. Do not place a period after the date. 

On ordinary business stationery, 83^ by 11 inches, the end of 
the date-line is to come as nearly as possible at 80. To accomplish 
this, the following scale has been arranged: in the months from 
September to February begin the date at 64; from March to 
August at 67. 

Letters transcribed up to 4 p.m. are to be given the date of 

27 



MODERN METHODS IN THE OFFICE 

transcription. All letters transcribed after 4 p.m. are to be dated 
the following day. 

Letters returned for correction are to be corrected the same day, 
if possible. 

Estimating the Length of a Letter 

Special attention must be paid to centering the letter. In every 
instance the typewritten matter is to be as nearly as possible in 
the center of the page — that is, the space under the letter-head and 
the space beneath the letter should be approximately the same. 

No positive rule can be given with regard to the point at the 
top of the page at which the address and salutation are to be 
placed. It is a matter of careful judgment. 

The phonograph slip that accompanies the cylinder is a guide, 
though the dictation of different correspondents varies greatly 
in amount of typewritten matter. Some correspondents speak 
quickly and without hesitation, so a relatively small part of the 
cylinder would be used. Hesitation, corrections, etc., also take up 
space. A correspondent's habits of dictation should be carefully 
considered before beginning to type. 

As a general rule, any letter occupying less than five spaces on 
the slip is a "short letter," and is placed well down on the page. 
A letter using from six to twelve spaces is a "medium-sized letter" 
and is placed a little higher on the sheet. Any letter covering 
thirteen to twenty-five spaces is about a "full-page letter" and 
starts well up on the page. Any letter covering more than twenty- 
five spaces on the phonograph slip, in all probability, requires two 
sheets. 

A Simple Idea Increases this Stenographer's Speed 

"I have substantially increased my speed in taking 
dictation," said a stenographer, "by drawing vertical 
lines down the center of the pages of my note-book. 
This means that upon coming to the end of a line I 
have less space to cover to reach the beginning of the 

28 



TYPING AND CORRESPONDENCE 

Cutting Correspondence Costs 

"When I joined this organization some months ago," 
said an office manager, "a force of correspondents 
was employed chiefly for the purpose of acknowl- 
edging receipt of orders. Each letter was personally 
dictated. 

"Upon going through the files, I discovered sufficient 
similarity among the letters to warrant the hope that 
a plan of using stock paragraphs might be applied 
which would result in the entire elimination of dic- 
tation. 

"It was easy to divide the letters into types. Some 
were mere acknowledgments without further comment ; 
others involved an explanation as to why some of the 
shipment was omitted; others covered cases in which 
none of the goods required was in stock; others dealt 
with remittances which were more or less than the 
sum required. 

"It was a simple matter to prepare stock letters ap- 
plying to these instances. Naturally, in the para- 
graphs referring to the peculiar factors involved in 
the particular order referred to, a space was left for 
the insertion of the proper words or figures. 

"Now a letter goes to the typist with a slip attached, 
reading perhaps as follows: 

1 nth 

28 2 boxes, 18 by 24, dble. 2nd Am. 

94 
6 

25 



MODERN METHODS IN THE OFFICE 

"The typist thereupon writes as follows: 

Gentlemen: 

Your valued order of the 11th was received to-day. 

We are shipping by freight your order as requested, with the ex- 
ception of the omission of 2 boxes of 18 by 24 dble. 2nd American. 
Our warehouse reports a shortage of this size and we shall forward 
this item upon receipt of same from the factory, unless you notify 
us to the contrary. 

We are confident that the quality of the shipment will please you 
and we hope that you will call upon us whenever in need of glass. 

Thanking you for the order and hoping to hear from you again 
soon, we remain 

Very truly yours. 

"The method of procedure is, of course, self-evident. 
The typist referred to her book of forms, selected para- 
graphs 1, 28, 94, and 6, and that was all that was 
required. 

"This plan permits us to substitute eight-dollar-a- 
week typists for fourteen-dollar-a-week stenographers. 
Also it has reduced our correspondence staff seventy- 
five per cent. 

"Now I am evolving a plan whereby we can use 
actual form letters filled in where necessary, thus still 
further reducing the labor of typing. 

"By the use of the original ribbon used in making 
the form letter and the adoption of a method of repro- 
duction which is far superior to ordinary duplication 

I believe that this will prove to be practicable/' 

2<? 



TYPING AND CORRESPONDENCE 



Words, Expressions, etc., Not to Be Used 

For example: 

Do not Say: Say, Instead: 

Inclosed herewith Inclosed (simply) 



At the present time. At present. 



Two pair. 



Two pairs. 



This quality goods This quality of 

goods. 



The demand for these There has been a 
goods has been great- great demand for 
er than we looked for. these goods. 



You are due us $2, or There is a balance of 

we are due you, etc. $2 due us, etc. 

Your favor (or com- Your letter (postal 

munication) has just card, telegram) has 

reached us. just reached us. 



We shall try to always We shall try always 

please you. to please you. 

23 



Reason : 
Inclosed can mean 
only herewith. 

The and time are 

unnecessary. Avoid 
unnecessary words. 

The plural of pair is 
pairs. 

In the first sentence 
quality is used as an 
adjective when it 
should be a noun. 

The first expression 
would indicate that 
we did not expect 
much of a demand, 
and it would not, 
therefore, be good 
salesmanship. 

Due us, in this con- 
nection, is not good 
usage. 

Favor or communi- 
cation is not good. 
Some j r ears ago favor 
implied a delicate 
compliment, but it 
has been so constant- 
ly used that this 
meaning has been 
lost. 

Avoid split infini- 
tives. 



MODERN METHODS IN THE OFFICE 



You can make no mis- 
take in selecting eith- 
er of the three. 

We a A e anxious to 
know if you found 
everything satisfac- 
tory. 

You have had the 
goods quite some 
time. 

Our goods are differ- 
ent than others. 

We extend you our 
apologies. 



We beg to acknowl- 
edge receipt of your 
order, etc. 

Just as soon as we 
hear from you we 
shall send your goods 
at once. 

Our usual perfect ser- 
vice. 

On March 28th we 
wrote you stating that 
the dress you returned 
has not been received. 



You can make no 
mistake in selecting 
any one of the three. 

We are anxious to 
know whether (or 
not) you found 

everything satisfac- 
tory. 

You have had the 
goods a considerable 
time. 

Our goods are differ- 
ent from others. 

We apologize. 



We acknowledge 
(with pleasure) the 
receipt of your or- 
der. 

Just as soon as we 
hear from you, we 
shall send your 
goods. 

Our usually perfect 
service, or, our usual, 
perfect service. 

On March 28th we 
wrote you that the 
dress you returned 
had not been re- 
ceived. 

24 



Either must not be 
used in referring to 
more than two. 

Do not use if in a 
subordinate clause in 
the sense of whether. 



Quite some, quite a 
few, etc., are not in 
good usage. 

Avoid different than, 
say different from. 

Extend means to 
stretch out. It should 
seldom be used as a 
synonym of give. 

Beg should never 
be used in this con- 
nection. 

At once is unneces- 
sary with just as 
soon as. 

An adjective cannot 
modify another ad- 
jective. 

Wrong sequence of 
tenses. Do not use a 
present perfect tense 
with a verb denoting 
completed action in 
past time. 



TYPING AND CORRESPONDENCE 

Specific instructions for side margins. 

For example: 

The left margin is controlled by the left marginal 
guide, which should be set at 20. There is no excuse 
for an uneven left margin. 

The right margin depends upon the words ending 
the line. In attempting to keep this margin even, 
it is often necessary to divide a word of several sylla- 
bles, placing the last part on the next line. 

To further assist you to keep this margin even, the 
following facts should be observed: 

Under no circumstances let the line extend beyond 83. 
Better stop at 76 than at 85. 

Better divide a word at 76 (or up to 83, of course) 
than to extend to 84. 

Place the right margin guide at 80; this causes the 
bell to ring at 75. 

If necessary to go beyond 80 (up to 83), press the 
right release key. 

Saving Typists* Time 

"It is surprising how much time is saved by an 
improvement involving but a fraction of a second if 
the process is repeated often enough," remarked a 
typist. 

"We do a tremendous amount of circularizing in 
this office. Here is a little device which has proved 
practicable. Instead of inserting but one envelope, 
addressing it, and removing it, we insert an envelope 
to a point represented by turning the platen six spaces; 

21 



MODERN METHODS IN THE OFFICE 

then insert another, again turning the platen six times, 
and continue this until the first envelope is properly 
located for addressing. 

" We then address it with a vertical left-hand margin 
and remove it. Another envelope is then inserted, and 
turning the platen brings the second one into position. 
By repeating this process indefinitely a constant chain 
of envelopes passes through the machine. The saving 
of time comes in the fact that the platen is not turned 
clear to the center of the envelope for each one ad- 
dressed. Actual tests of the old and improved methods 
have demonstrated that a substantial saving of time 
is effected by the latter during a day's work." 



Is Your Business Correspondence Up-to-date? 

" Within the past few years I have noted a great 
change taking place in business correspondence/' re- 
marked an office manager. " Instead of feeling obliged 
to adopt a quasi-legal phraseology freely interspersed 
with polysyllables, people are beginning to write as 
they speak — simply, and directly to the point. 

"I ran across some data bearing on the subject, 
recently, which impressed me so favorably that I 
embodied it in a bulletin to be distributed to our cor- 
respondents. Here are some of the items: 

Do not say, "We wish to acknowledge the receipt of your es- 
teemed communication." You should say, "We are glad to receive 
your letter." 

Do not say, "We trust the dress is in your possession ere this." 

You should say, "We hope you have received the dress." 

22 



TYPING AND CORRESPONDENCE 

despatched one from the correspondence depart- 
ment. 

"It developed, however, that very often interruptions 
delayed the progress of the work. A salesman might 
call, or the department manager's presence be required 
at the main office; sometimes a girl would consume a 
couple of hours in receiving a half-dozen letters. 

"'Why not transact this business over the 'phone?' 
I reflected, one day. 'By keeping the girls right here, 
they could be engaged in routine work constantly, 
except when actually needed for dictation. Further- 
more, it would save the time required in going to and 
returning from the department manager's desk.' 

"The new system has worked perfectly. Now the 
girls are constantly engaged in actual productive labor. 
When an executive wants to get out some letters, he 
calls up the central office, is connected with a stenog- 
rapher, and rattles off his correspondence. In case he 
is interrupted, she can proceed with her typing until 
she is needed again. And no time is wasted in walking 
long distances through the store." 

A New Wrinkle in Business Correspondence 

"Here's a new one on me," remarked a local business 
man as he tossed the writer a letter. 

"Note that directly under the date they've typed 
the phrase, 'Replying to your letter of Aug. 21st.' 

"A good idea I call it. It removes that stereotyped 
interest-killing phrase from the initial portion of the 
body of the letter, and yet, by its presence, assures 

3 19 



MODERN METHODS IN THE OFFICE 

that no confusion will result from lack of data as to 
just what the writer is talking about." 

In concluding a letter, says an office manual, avoid 
stereotyped forms: 

Example: " Awaiting your reply with interest." 

Or: 

"Trusting that we shall be favored with your 
order," etc. 

Say, instead: "It is not simply because we want the 
order that we are anxious to send you these goods. 
That's one reason, of course; but we want most to 
show you what complete satisfaction buying from us 
really means. You have our Style Book. Do not lose 
this opportunity." 

Or: 

"The coat you have asked about is one of our most 
beautiful models, and it is one of our best values, too. 
You could not make a better selection." 

As regards the physical appearance of letters, the 
following pointers are valuable: 

Quotations: When a paragraph is quoted in the 
body of the letter, both right and left margins of the 
quoted paragraph must be indented at least five spaces 
further than the regular paragraphs. 

Quotations should be single spaced; quotation marks 
should not be placed before each quoted paragraph, 
but only after the last. 

When an original letter is quoted in a follow-up 
letter, do not inclose the quoted letter in quotation 
marks. 

20 



PROBLEMS OF PERSONNEL 

" Hence many workers in minor capacities lack in- 
terest in their labors. They cannot see that they 
are contributing their little part to a big result. Con- 
sequently they work listlessly, without enthusiasm. 

"This was a condition which prevailed in our office 
up to a couple of years ago. The clerks worked with- 
out interest; errors were made; we had a corps of 
clock-watchers. 

"After devoting some thought to the problem, a 
simple solution occurred to me. The members of 
the office force took no interest in their tasks because 
the work seemed pointless and futile. The relation 
between their labors and the delivery of our finished 
product from the factory was not clearly apparent. 
Many of them had never entered the factory. 

"I at once installed a system whereby the clerks 
were conducted through the plant in groups. They 
followed the manufacture of our product from the 
raw material to the finished article. And their own 
connection with all this activity was made clear. 

"The change in their attitudes was amazing. They 
began to see that they were very useful cogs in the 
great wheel of industry. They returned to their desks 
with a feeling that their efforts counted in the great 
scheme of things. 

"The quality of their work promptly improved; 
they ceased to watch the clock; they felt that, al- 
though the niche they occupied might be small, it was 
indispensable. A spirit of co-operation developed. I 
wonder that I never realized the value of this idea years 
before." 

5 51 



MODERN METHODS IN THE OFFICE 

Saving Time in Office Work 

" Every effort is made to conserve the time of fifty- 
thousand-dollar-a-year men/' remarked the office man- 
ager of a factory. "The waste involved in permitting 
them to spend even a few minutes a day in detail work 
is so obvious that much thought is devoted to methods 
which will leave every precious moment free for con- 
structive planning. 

"But in thousands of offices much of the time of 
twenty-dollar-a-week men is spent in doing five-dollar- 
a-week work. In a large organization the money value 
of time thus consumed totals large sums annually. 
We have devised several methods of eliminating this 
factor of waste. For example, when invoices of pur- 
chases arrive, we enter them in a purchase journal, 
segregated alphabetically. From this book postings 
are made to the purchase ledger, to bills-payable book, 
and to the distribution book. 

"By having all invoices arranged in alphabetical 
order by a six-dollar-a-week boy, the clerical staff, the 
members of which are paid three or four times as much, 
are enabled to do their posting very quickly. In post- 
ing to the purchase ledger, our force averages from 
five to six postings a minute. 

"Another time-saving plan, which at first thought 
sounds Chinese in its apparent inversion, is to have the 
bookkeeper work from the end of the journal toward 
the front instead of beginning where he left off. This 
means that he works from the back to the front of the 
ledger as well. While he is completing his pen- work 

52 



PROBLEMS OF PERSONNEL 

with his right hand, his left hand is finding the proper 
page for the next entry; a result which would be im- 
possible if the next page desired were under the one 
upon which he is at work. This has resulted in in- 
creasing his efficiency two hundred per cent." 

Hiring Help Scientifically 

"The employer or employment manager who selects 
human material on any basis other than that of im- 
partial tests is not only betraying his intellectual 
limitations," remarked a business man, "but he will 
soon fill the place with types which more or less ap- 
proximate his own, with the final result that the or- 
ganization will become lopsided. 

"Individual reactions mean nothing whatever re- 
garding an applicant's ability. Each of us admires 
the perfection of his own type. If we select lieutenants 
on the basis of what we consider our knowledge of 
human nature or our intuitive perceptions, we are 
merely indulging our prejudices. And that is the way 
most people are hired. The secret of securing a job, 
then, is to keep trying until one finds an employer or 
employment manager who sufficiently resembles one's 
own type to result in a favorable impression. What a 
footless way to conduct business! 

"Many years ago I received a lesson. I was one 
day calling upon a friend who was the vice-president 
of a realty and home-building company. I was about 
to leave his office when he remarked: 

"' Won't you remain a few minutes? An applicant 

53 






MODERN METHODS IN THE OFFICE 

for a position as head of our rental department is 
waiting outside. I'll have him shown in for an inter- 
view, and would be very grateful to have your im- 
pressions of him.' 

"I agreed to the suggestion and was present during 
the half -hour interview. 

"'Well, I'd just as soon have a snake in the office/ 
exclaimed my friend, after the man's departure. 

My idea, exactly,' I replied. 'Too suave and oily. 

Uriah Heep" to the life. I like a man to be frank 
and outspoken, with a sense of humor. That fellow 
counts ten before he utters a word. There's something 
sneaky about him.' 

"Two weeks later I found the man installed as head 
of the rental department. Refusing to be discouraged 
at the rejection, he had sought out the president of the 
company. The latter had been deeply impressed by 
what he termed the man's 'subtle diplomacy and 
tactful courtesy,' and had hired him over his colleague's 
head. 

"He turned out to be a very successful executive 
and a valuable asset to the company. As a matter of 
fact, my friend and I objected to the man because he 
differed from us. We merely indulged our prejudices. 

"Realizing what it is that makes betting on horse- 
races, I now have my organization operated on civil- 
service lines. In so far as is possible, the human 
element is eliminated in selecting men either for pro- 
motion or to join us from outside sources. I want the 
one ablest man for the job, regardless of whether or 
not he appeals to me personally. 

54 



PROBLEMS OF PERSONNEL 

"One of my leading executives is a man with whom 
I am utterly uncongenial. He is solemn, pompous, 
lacking in humor, and a religious crank. But he 
demonstrated his fitness for the job and he got it. 

"For the bigger jobs my men generally promote 
themselves through performance. But in the lower 
ranks we have a system of quarterly written tests. 
These serve to rivet attention upon particularly prom- 
ising material, and thus the men have no chance to 
cry favoritism. Written tests also are used in taking 
on new help. 

"The National Association of Corporation Schools 
recently issued the findings resulting from a question- 
naire submitted to various concerns. " The ratings in- 
dicate the relative importance of the various qualifi- 
cations in the eyes of employers: 

Previous employment, general 100 

Age 97 

Names of employers 97 

Duration of employment 94 

Nature of work 94 

Married or single 92 

Reason for leaving 92 

References 92 

Scholastic education, general 89 

Drinking 87 

Health, general 84 

Present health 84 

Qualification for clearly defined position 84 

Mental attitude toward advancement 82 

Remuneration during previous employment 79 

Past health 76 

55 



MODERN METHODS IN THE OFFICE 

Definite desires 71 

Natural aptitude as indicated b}r preference to various sub- 
jects studied 66 

Scholastic standing 60 

Habits, general 60 

Definite plan for progression 60 

Weight , 58 

Ideas as to the relative importance of money in comparison 

with other things 58 

Height 55 

Home environment 55 

Parental supervision 55 

Ultimate aims 53 

Physical examination 45 

Smoking 45 

Previous employment, how obtained 39 

Line of descent 37 

Working hours, previous 37 

Financial obligations, general 37 

Reasons for debt, if any -. 32 

Church 32 

Societies 32 

Plans for meeting financial obligations 29 

Social standing, general 29 

Clubs 24 

Progress made in society 21 

Athletic diversions 21 

Are You Mentally Subnormal? 

" Scientific selection of human material, careful train- 
ing, and a proper system of payment — those are the 
three essential factors in the creation of a competent 
clerical force," said an office manager. 

56 



PROBLEMS OF PERSONNEL 

"In this connection, the work being done under the 
auspices of the National Association Schools of Scien- 
tific Business, of which Mr. Sherwin Cody, of Chicago, 
is managing director, is of great interest. This organi- 
zation has compiled tests for use in weeding out the 
less competent applicants for positions, and also has 
evolved brief and practicable educational courses for 
office help, designed to increase efficiency in spelling, 
simple arithmetic, grammar, punctuation, touch type- 
writing, etc. 

"Not only are the tests valuable in selecting fresh 
timber from outside the office, but in promoting those 
within the ranks they serve to indicate the most 
promising material. 

"As Mr. Cody truly states: 'Tests of mental alert- 
ness should always be supplemented by tests of in- 
dustry, such as a memory test (concentrating for five 
minutes on memorizing a given passage, then using 
ten minutes to reproduce what is remembered). Re- 
sults in business have three factors: 1. Mental alert- 
ness. 2. Industry. 3. Time. Time and industry will 
make a small amount of mental alertness go a long 
way, and mental alertness lacking time and industry 
will accomplish little. J 

"Observation of some thousands of tests given by 
Mr. Cody indicates that the same test given the same 
persons at intervals of a month will show perhaps 
five per cent, of freakish variation, due to not knowing 
just what is required, inability to get the mind working 
normally in the short time allowed, and nervousness; 
but a series of seven or eight tests extending over an 

57 



MODERN METHODS IN THE OFFICE 

hour in every case corrected this freakishness. No 
single tests could be depended on to do more than 
eliminate incompetents; but a series of seven or eight 
tests, or two or three longer tests, would safely separate 
the passable into three classes, the fair (or passable), 
good, and excellent. In matters where judgment had 
to be exercised in grading, agreement of graders could 
not be secured to a closer point than a scale of five — ■ 
failure, poor, fair, good, excellent. General judgment 
based on such records in ninety-five per cent, of the 
cases of employees tested seemed to be verified by 
employers. Many important considerations in em- 
ploying help cannot be tested at all, and must be 
discovered by examination in person by an employ- 
ment expert. But the clearly competent can be 
separated from the clearly incompetent so far as 
mental ability and industry are concerned; and rec- 
ords of speed and accuracy, and knowledge of the 
fundamentals of education, will enable employers 
to distinguish as much as first, second, and third 
choice on the operations actually to be performed 
by stenographers, bookkeepers, office-boys (funda- 
mentals), general clerks (accuracy in addressing and 
filing, etc.), and correspondents (common sense and 
tact in answering letters). Beyond these five classes 
and the few subjects involved Mr. Cody's experi- 
ments have not yet carried him. It is believed 
that the fundamental education tests are good for 
all classes where education is a requirement, as in- 
dustrial apprentices, salespersons, etc. 
"Here is one of the tests: 

58 



PROBLEMS OF PERSONNEL 

Fractions (short cuts) 

Multiply mentally and write the answers in pencil on this sheet 
after the problems. If you are unfamiliar with short cuts, do the 
best you can in the time allowed. Accuracy is more important 
than speed, but if you finish in less than the time allowed, note the 
exact time. Decimal points essential. 

Time allowed, five minutes. 



Multiply: 

103 at 4 1/4 c 


70 at 57 1/7 c 


34 at 5 1/2 c 


1866 at 66 2/3 c 


6643 at 6 1/4 c 


40 at 37 1/2 c 


72 at 8 1/3 c 


144 at 87 1/2 c 


124 at 12 1/2 c 


112 at 6 2/3c 


99 at 11 1/9 c 


18 at 62 1/2 c 


84 at 14 2/7 c 


32 at 18 3/4 c 


333 at 33 1/3 c 


17 at 42 1/2 c 



(C 



For this test, a rating of 30^ represents the aver- 
age speed, with 7 errors; and a rating of 65 represents 
the maximum speed, with 4)4 errors. These ratings 
are figured, we are told, as follows : answers to all the 
problems in column one count as 31, in second column 
also as 63. 

" Because the range of qualifications for office help 
is comparatively narrow, it would seem that tests of 
this sort would permit of the selection of an all-star 
aggregation. 

' Similar tests for outside salesmen, which have been 

propounded by various educators and psychologists, 

seem to me well-nigh worthless. Office employees 

are, to a great extent, machines. The capacity of a 

machine can be accurately measured. But in branches 

of endeavor in which initiative and ideas are de- 

59 



MODERN METHODS IN THE OFFICE 

manded, as in the cases of salesmen, executives, etc., 
there the only safe test would seem to be that of 
performance." 

A Concern with the Right Spirit 

"Some men are interested in their work both for 
the work's sake and for their own sake," remarked an 
executive, recently, " while with others the work is 
in no degree an end in itself, merely a means to an 
end, the latter being the weekly pay-envelope. This 
attitude means one of two things: the job is wrong or 
the man is wrong. Sometimes it's the first reason and 
sometimes the second. 

" Often the right man in the wrong job appears to 
be fundamentally worthless. Shifting him to the 
proper niche will cure the trouble. But for some men 
there is no right niche. Get rid of them; that's my 
policy. 

"When you come in contact with an establishment 
where each man's eye is centered only on his pay- 
envelope, there you find petty jealousy, office politics, 
sycophancy, and backbiting. If you're working in 
such an atmosphere, get out; that's my advice. Get 
a job with a competing concern, for sooner or later the 
whole establishment will begin to suffer from the in- 
roads of competitors who are in a healthier condition. 

"When a younger man I was employed by a con- 
cern which at that time was a leader in its field. I 
spent five years in working up to the position of as- 
sistant office manager. Once ensconced in this job, 

60 



PROBLEMS OF PERSONNEL 

I promptly began to urge certain reforms about which 
I had read. I wanted our typists shifted to a piece- 
work and bonus system of payment; demanded that 
the entire wage scale be readjusted in accordance with 
the actual productive power of each individual typist, 
suggested that a brief educational course be installed, 
etc. My superior concluded that all this was a re- 
flection upon his regime, this despite the fact that I 
sought to be tactful and was willing that he be credited 
with all the glory. 

"The measures I advocated were suppressed, and 
upon my threatening to force the issue by appealing 
to the higher-ups, I was summarily discharged. 'Too 
ambitious/ was the verdict. 

Naturally, I went directly to the president. 
You're well out of this place/ he informed me. 
'The office manager is close to heavy stockholders 
and, consequently, my hands are tied. I can place 
you elsewhere, however, and eventually you'll see that 
your discharge is a blessing in disguise. This entire 
establishment is honeycombed with pull, preference, 
and politics. Because I'm getting a high salary, I 
remain, but we cannot long compete with younger 
competitors who, instead of discouraging ambition, 
place a premium upon it/ 

"True to his word, the president secured me an 
opening with this concern, one which is forging ahead 
at the expense of its moss-grown rivals. Here the spirit 
is healthy and optimistic. Every man is interested 
primarily in his work. There's an esprit de corps, a 
sense of united effort, and team play which is inspiring. 

61 



a 



MODERN METHODS IN THE OFFICE 

" Promotions are made upon merit. Pull and poli- 
tics play no part in a man's advancement." 

How to Hire Men 

"In hiring men," said the executive of a large insti- 
tution, "I never look for bargains, because my ex- 
perience has convinced me that they don't exist. By 
bargains I mean hiring a forty-dollar-a-week man for 
fifteen dollars because hard luck has forced him to 
accept a fifteen-dollar job. 

"If you haven't a forty-dollar-a-week job open, pass 
up the applicant. If you don't, he will remain with 
you but a short time; merely long enough to enable 
him to find a job suited to his capacity. Or if he 
really intends to stay, he will probably disturb your 
organization by seeking to push himself up too quickly. 
Unjust as it seems, it is bad policy to jump a man from 
a fifteen-dollar job to a forty-dollar one, even though 
he deserves it. The rest of your staff thinks that 
favoritism has been exerted and is likely to become 
dissatisfied. This is merely a general rule, you under- 
stand. No doubt there are exceptions. 

"Another type against which I'm on my guard is 
the clever floater. He is hard to resist, because his 
experience has equipped him to talk almost any execu- 
tive into giving him a chance. Many of this type are 
very capable employees; they leave a trail of regretful 
employers in their wakes. Their records are clean 
except for one point — they won't stick. It is their 
very ability which is their curse. They know that 

62 



PROBLEMS OF PERSONNEL 

they can obtain and hold a job almost any time. Hence 
their readiness to resign whenever a restless spell at- 
tacks them. Needless to say, they are a poor invest- 
ment. Shortly after they become of real value and 
you've become accustomed to depending upon them 
they leave. And that means the trouble and expense 
of breaking in another man. 

"But there again there are exceptions. One of our 
high-salaried executives, who has been with us ten 
years, had drifted from New York to Hong-Kong 
when we hired him. But we happened to get him at 
the psychological moment when he had concluded to 
settle down. As a general rule, steer clear of floaters. 
They're a poor investment. 

"Analysis of my records shows that our most satis- 
factory employees have been recruited from the ranks 
of men from twenty to twenty-five years of age, 
equipped with one or two or possibly four years of 
high-school experience. 

"But with so many more young men of scanty 
funds going through college, we may find that in the 
future more and more college men will join us and 
make good." 

Saving Delivery Expense 



tf 



You know it developed at the George Junior Re- 
public that even the most incorrigible boys promptly 
became pro-social and law-abiding as soon as they 
were put in possession of a little piece of land they 

could call their own," remarked a laundry proprietor. 

63 



MODERN METHODS IN THE OFFICE 

"That fact suggested a plan which has worked well 
in my business. 

"I used to supply my men with horses and wagons. 
The expense was heavy; the live stock was handled 
carelessly, overfed or underfed, overdriven; my vet. 
bills were very heavy. 

" Finally I concluded to sell my horses and wagons 
to my drivers on easy payments. Now they own them. 
The wagons bear the name of my establishment; they 
are uniformly painted. My collection and delivery 
expense is less than previously — and my men earn 
more. Why? Merely because they are more care- 
ful of the horses and wagons. This saving divided 
between the men and myself means more money for 
both parties." 

How to Hire Competent Employees 



(t 



Daily I am amazed at the haphazard methods 
used in employing labor," said the general manager of 
a large concern. 

"The accident of mere acquaintance has been the 
determining element in the employment of many men 
for positions entailing heavy responsibilities. Merely 
that a man may fill a position satisfactorily does not 
mean that somewhere in this country of one hundred 
million souls there isn't a man who could satisfy its 
demands far better. 

"No matter how relatively unimportant a job may 
be, I believe in establishing contact with a big field 
of applicants; then, by a process of elimination, finally 

64 



PROBLEMS OF PERSONNEL 

selecting the one best man. This means that I have 
constantly at hand a good supply of tested timber for 
advancement. 

" Whenever possible I avoid the fallible element of 
personal impression by rigid competitive tests. All 
our stenographers, for example, have obtained their 
positions by successfully passing written examina- 
tions which weeded out the less efficient applicants. 

"But the nature of the qualities demanded in many 
berths precludes the use of such simple and convincing 
methods. To obtain applicants for higher executive 
positions, I advertise in the newspapers and trade 
media. As I am inclined to believe that in nine cases 
out of ten a man who can think clearly can write clearly, 
I do not hesitate to eliminate perhaps seventy-five 
per cent, or more of the applicants by the letter test. 
This leaves a balance of twenty-five per cent, either 
to be personally interviewed or to be requested to 
write once more, giving further particulars. 

"At the personal interview I rate each applicant 
by his past record and experience, to be verified later; 
his appearance; his ability as displayed by his con- 
versation; and last, but doubtless not least, by the 
impression which I receive by my intuitive perceptions. 

"I am not infallible. I have hired several false 
alarms. One man who impressed me unfavorably was 
later employed by a competitor, and now receives a 
higher salary than I do. An extremely nervous in- 
dividual, he was the type which is unable to put its 
best foot foremost at a crucial moment. This mistake 
has cost us a great deal of money. But from the 

65 



MODERN METHODS IN THE OFFICE 

experience I learned a lesson. Now I seldom make a 
choice on the first interview. I interview those who 
qualify for the final heat, to use a sporting term, 
three or four times before making an irrevocable de- 
cision. Had I pursued this policy in the case mentioned, 
the man I rejected would have recovered from his 
attack of buck fever and I'd have discerned his real 
merit. 

"The main point, however, is to apply convincing 
tests whenever possible; in other cases to pick your 
man from an abundance of material." 

" An Executive Should Possess a Good Working Knowl- 
edge of Psychology," says the President of this Concern 

"A theoretic knowledge of human psychology is a 
great asset to an executive," said the president of one 
of this country's largest concerns. "Yet few possess it. 

"In common with most business men, I held the 
idea for a great many years that in the event of a 
vacancy in a sales manager's job the best salesman was 
the proper man to take the place. 

"Now I know from experience that a man may be 
a very good salesman and make a very poor sales 
manager, also that a man may be a mediocre salesman 
and an extremely efficient sales manager. The ex- 
ceptional man may be both. 

"This information, which is worth a great deal to 
a man in my position, was gained from observation 
and experience. Had I been grounded in psychology, 
I would have learned it at a much lower cost in actual 

66 



PROBLEMS OF PERSONNEL 

money. Here's how I happened to acquire the in- 
formation. 

"Some years ago it occurred to me that, with a view 
to increasing the value of their services, some system 
should be developed for the education of our employees. 

"I began by inviting a few of our promising young 
men to my house one evening a week. Here we dis- 
cussed practical commercial problems. We surveyed 
the business from several angles: production, sales, 
administration, etc. 

"The class grew until I was obliged to transfer our 
class-room to the plant. Our procedure was about as 
follows: First came a lecture from some experienced 
member of the staff. Sometimes a successful sales- 
man talked on the technique of salesmanship; or the 
office manager told his story, emphasizing the value 
of accuracy in filling and receiving orders. Again, 
the credit-man discussed the business from his angle, 
making a plea for closer co-operation from the sales staff. 

"After this came a fifteen-minute period which we 
called the open forum. Any one was at liberty to 
ask questions or to propound suggestions. 

"The session wound up with a written examination 
covering the subject of the evening's lecture. Ten 
questions were asked; the answers displayed the 
pupil's grasp of the subject. At the end of the term, 
a rating was given each pupil. The leaders were con- 
sidered in line for a promotion to a traveling-salesman's 
position at the first opportunity. 

"At the end of our first term, one young man stood 

head and shoulders above the rest. He was in a class 
6 67 



MODERN METHODS IN THE OFFICE 

by himself. Not only did he have a much more 
thorough knowledge of the process of production and 
the channels of distribution, but he was endowed 
with remarkable imagination and power of initiative. 
'Shepley's got everything/ said our vice-president. 
1 He'll be a world-beater. Let's put him out on the road. ' 

"He was a disappointment from the start. His 
sales were below the average in volume. He simply 
couldn't put it over. We'd about decided to send 
him back to the warehouse when a territorial manager- 
ship became vacant. The sales manager for the 
Northwest resigned to enter business for himself. 
Just for an experiment, I sent Shepley up there. He 
controlled a force of five salesmen. 

"Immediately he began to devise schemes for sup- 
plying his men with additional incentive. He installed 
a mailing system to support their efforts. He developed 
the idea of dealer co-operation, then in its infancy, to 
a point far beyond our most extreme conceptions. 
Sales increased by leaps and bounds. He made good 
from the beginning. To-day, twelve years later, he 
is sales manager at headquarters, with all the district 
managers subordinate to him. 

"The explanation? Shepley is a mental type; he 
belongs at a desk. He is a natural tactician; a born 
general. Most good salesmen are motive types. They're 
in their element right on the firing-line. They're mag- 
netic, good mixers, men of action. Shepley is a man 
of thought. And his particular brand of thought has 
been worth millions of dollars to this concern. And I 
came within an ace of relegating him to the ware- 

68 



PROBLEMS OF PERSONNEL 

house, where he'd have been of little value to the or- 
ganization !" 

Reducing Labor Turnover More than One-half 

"If we could only devise a method of holding our 
men," said Dalton, the general manager, "it would 
help some. The labor turnover in our collection de- 
partment is terrific. We can't afford to pay any more 
and we can't afford to be eternally breaking in new 
men. I estimate that the average cost of securing and 
teaching new men on this job is at least sixty dollars." 

"It's a problem," conceded Whiting, the branch 
manager, "and I see no solution for it. All our com- 
petitors are confronted with the same conditions." 

"There's a solution to everything," reflected Foster, 
the young stenographer, who overheard the conver- 
sation. "I'll see if I can't evolve some plan to settle 
this difficulty." 

Three weeks later the two executives were again in 
conference. Foster sat at his little desk near the 
branch manager's. 

"I've been thinking about that question of labor 
turnover," he volunteered, as Dalton arose to leave. 
"Why wouldn't it be a good plan to pay the men a 
dollar a week less, giving them fifty-two dollars in a 
lump sum as a bonus at the end of each year's service? 
Add to this the sum forfeited by those who don't stick." 

"It sounds good," agreed Dalton. "Try it cut, 
Whiting," he added, turning to the branch manager. 
"Often the simplest ideas are the most effectual." 

69 



MODERN METHODS IN THE OFFICE 

Within six months the labor turnover had been re- 
duced over one-half and Foster had been called to the 
main office at increased pay, and placed in a job which 
was directly in line for rapid promotion. 

Test Yourself by this Standard 

"Here is a blank application which is used by one 
of the country's great advertising agencies for the 
purpose of judging the qualifications of candidates 
for employment," remarked a business man. 

"It struck me that most of the questions applied 
equally well to almost any line of business. Look it 
over and see how you measure up. Note that they 
demand the information regarding your record with 
former emploj^ers four times, i. e., from four em- 
ployers. 

Have you judgment? 

Manual accuracy? 

Mental accuracy? 

Clearness of expression? 

Patience? 

Perseverance? 

Poise? 

Energy? 

Self-confidence? 

Optimism? 

Are you systematic? 

Conscientious? 

Deliberate? 

Impulsive? 

What do you lack? 

What is your ambition? 

70 



PROBLEMS OF PERSONNEL 

Do you do your best work when it is planned for you or when 
you plan your own work? 
How seriously do you take your work? 
What is your hobby? 
Does it interfere with your business? 

How do you spend your leisure time: chief sports or amusements? 
Are you a member of any club, organization, or society? 

Former Employers 
Name and address. 
What work did you do? 
What salary did you receive? 
Why did you leave? 

What one thing do you think you contributed while at this work 
which improved or developed either it or the metlwd of handling it? 
Of what part of your work are you most proud? 

"Then comes a test which applies only to the ad- 
vertising profession. 

Select from the last issue of the (name of well-known national 
weekly) what, in your opinion, are the three best advertisements. 
Give your reasons for this selection in not more than 100 words. 

"This application-blank is supplemented by a per- 
sonal interview upon which much depends. " 

" The Man, Not the Money, Is What Counts,' ' says this 

Credit-man 

*'When a man requests a line of credit with us," 
said the credit-man of a big wholesale house, "he 
always seems surprised to learn how comparatively 
little interest I display in ascertaining how much he 
has, and how extremely anxious I am to discover how 
much he knows. 

71 



MODERN METHODS IN THE OFFICE 

"My experience has taught me that mere money 
can be easily lost. But ability and character — those 
are stable, permanent assets which can create more 
money. 

"Only yesterday I extended one man a liberal line 
of credit, despite the fact that he had but twelve 
hundred dollars cash capital. And the day before I 
held a man with five thousand dollars down to terms 
which were little better than cash. 

"The first man is twenty-five years old, has acted as 
chief clerk for a store which sells our line, is backed 
by five years' experience, and has saved his twelve hun- 
dred dollars capital out of his salary. I quizzed him 
closely regarding his knowledge of the principles of 
retailing, and found that he has a very good grasp of 
the subject. Reforms instituted by him largely ex- 
plain the success of his present employer. Investiga- 
tion of his character references disclosed the fact that 
his record is clean and aboveboard. 

"The other man, who is worth five thousand dollars, 
is a quite different case. He, too, has worked as a 
clerk for a retailer who distributes our product. But 
he could not tell me of one instance where he had im- 
proved or developed the methods in vogue in his 
store, this despite the fact that he has worked there 
four years. He displayed very little knowledge of the 
fundamental factors of successful merchandising, and 
admitted that he had not saved a dollar out of his 
salary. It seems that he recently inherited his five 
thousand dollars from a maiden aunt. I do not ques- 
tion this man's honesty; as in the other case, his 

72 



PROBLEMS OF PERSONNEL 

character references showed up well. Barring acci- 
dents, the first man will win out. The chances are 
all against the second man. I told him so frankly. 

"'If you want to buy here/ I said, 'we'll sell you. 
But we can allow you practically no credit. We must 
have our money within ten days from date of invoice, 
and at no time can your unpaid bills total more than 
one hundred dollars. I doubt if you make good. But 
if you insist upon starting your own, place, we might 
as well get your money as any one else. You'd do 
better to hold on to your present job; put your money 
into first mortgages and delay your own experiment 
until you've developed more. If, in the course of four 
or five years, you can work up to be chief clerk of the 
store in which you're now employed, then you'll have 
demonstrated that you're of the timber to succeed 
independently.' 

"Well, he appreciated my frankness, but refused to 
accept my advice. He placed an order for a bill of 
goods and will open within two weeks. 

"Some concerns rate the credit essentials as follows: 

1. Capital. 

2. Character. 

3. Ability. 

4. Promptness. 

"The order in which I place these factors is as follows : 
( Character, 
( Ability. 

2. Capital. 

3. Promptness. 
"With me the man bulks larger than the money." 

73 



1. 



MODERN METHODS IN THE OFFICE 

How Siebolt Saved His Firm $6,000 a Year 

"What one thing do you think you contributed while 
at your work which improved or developed either it or 
the method of handling it?" 

Edward Siebolt reread the phrase. He was glancing 
through an application-blank used by a great organi- 
zation for the purpose of securing information by 
which to judge the qualifications of candidates for 
positions. 

"What one thing have / done in my present job?" 
reflected Edward. "I've been here two years; I've 
worked hard. But I begin to see that I've worked 
blindly. I've never displayed any initiative. How 
would I show up if asked to fill out this blank? Not 
very creditably, I fear. If I expect a raise January 
first, I'd better do something to deserve it. I'll set 
aside an hour every evening in which to read business 
literature." 

It was one afternoon, a couple of months later. A 
temporary lull offered the young invoice clerk an op- 
portunity to approach the general manager. 

"Mr. Gridley, I've been reading up on modern 
efficiency methods lately, and I've gained some ideas 
which could be applied right here in the office," said 
Edward. 

"Spring them," suggested Gridley. "Expenses are 
steadily mounting, and any plan to save money will 
be welcomed." 

And Edward went on to outline his proposed methods. 

74 



PROBLEMS OF PERSONNEL 

"Siebolt, you've struck something!" exclaimed his 
superior, at the conclusion of the young clerk's ex- 
planation. "I'll appoint a man to relieve you, and 
Monday you can start in and see how your plans work 
out." 

Siebolt began by collecting a mass of past corre- 
spondence from the files. This he proceeded to analyze. 
It developed that practically all the firm's outward- 
bound communications could be covered by stock 
paragraphs and letters. An assortment comprising 
eight beginnings, twenty-eight endings and forty-six 
short, complete letters took care of almost every pos- 
sible contingency. Siebolt had these typed, numbered 
consecutively, mounted upon large cardboards, and 
placed, one on the correspondent's desk and duplicates 
upon those of the typists. Previous to this all letters 
had been dictated into the machine. 

"Now all you have to do," explained Siebolt, "is to 
read your incoming mail, pencil the numbers of the 
paragraphs on your board comprising a reply, and 
distribute the numbered slips to the girls." 

"Saves my time, the girls' time, and the cost of the 
records," observed Calkins, the correspondent. "Pretty 
soft. Why didn't we ever think of it?" 

By the end of a couple of weeks it developed that 
four of the typists could be released for duties in other 
departments. The balance remaining could easily 
handle the volume of work. 

"This is only a beginning," said Siebolt. "My next 

step will be to have typed form letters reproduced 

by machine with spaces left at the ends of the lines 

75 



MODERN METHODS IN THE OFFICE 

for filling in. Much of our correspondence can be 
thus handled." This proved to be the case. Two more 
girls were then shifted elsewhere. 

Following this, the young iconoclast evolved a care- 
fully studied and uniform arrangement for the desk 
drawers. Specially constructed pigeonholes which 
held the letter-heads at a slight angle, together with 
an arrangement of the envelopes in such a manner 
that a single motion of the left hand sufficed to insert 
them in the machine, effected a substantial saving of 
time and lost motion. 

"Now then," said Siebolt, "here's another sugges- 
tion which will increase production. When work 
slackens, instead of dividing the letters among the en- 
tire force, thus inducing a general, though unconscious, 
lessening of speed throughout, keep one, two, three, 
or as many girls as are needed, working at normal 
capacity, and assign those not required to other tasks. 
Otherwise the morale of the whole force is, from a 
speed viewpoint, seriously damaged." 

These suggestions, combined with a bonus system 
of payment which Siebolt adopted from the method 
evolved by a great publishing-house, resulted in so 
increasing production that the services of four more 
typists were dispensed with and they were assigned 
to another department. 

"Now then," said Siebolt, "it's three months from 

the time I started to inaugurate these ideas. We're 

turning out just as much work as we ever did, and 

we're doing it with ten less typists than previously." 

"That means a saving of over six thousand dollars 

76 



PROBLEMS OF PERSONNEL 

per year," said Gridley. "Very good, Eddie. You'll 
find forty dollars a week additional in your envelope, 
beginning next week. And we want you to make a 
complete survey of the entire plant with a view to 
heading a permanent department on costs and effi- 
ciency. This raise is just a starter. The more we can 
pay you, the better satisfied we'll be." 

The Value of Personality in Business 

"To achieve success," said a prosperous merchant, 
who is noted for the breadth of his interests, "two 
factors are necessary: first, a thorough knowledge of 
your business, and, second, a complete understanding 
of men. I don't know which should be rated higher. 
Too many people assume that the first is all that is 
required. This despite the fact that not a day passes 
that does not witness the promotion of some genial, 
courteous chap who, perhaps, is not an expert in his 
line, over the head of a crabbed crank who, by any 
test of sheer knowledge, would easily defeat his 
successful rival. 

"The ability to 'get along with people' — what an 
asset it is! One of the most conspicuous successes of 
our day, George W. Perkins, possesses this power to 
an extreme degree. Even J. P. Morgan, who was 
not distinguished for his sweet disposition, promptly 
succumbed to the charm of Perkins's personality. 

"Of course, personality alone will not get you far. 
But neither will ability. Personality coupled with 
ability — there's an invincible combination. 

77 



MODERN METHODS IN THE OFFICE 

"Have I made it clear, I wonder, that I am using the 
word 'personality' as synonymous with 'a complete 
understanding of men'? If one grasps human nature 
and is anxious to make a favorable impression, he will 
succeed in making his listener feel pleased with him- 
self and, at the same time, will not descend to crude 
flattery. That is what people call ' personality. ' 

"Too often consciousness of ability is accompanied 
by ill-disguised conceit. That is the handicap under 
which many competent men labor. 

"If you want to score a success, study methods; 
you've got to be able to deliver the goods. But study 
men, too. To find a purchaser of your ability is often 
as difficult as to attain it. The man who studies men 
finds it easy to market his brains at a good price.' ' 

A College Education for Business Men 

In his speech on Accounting delivered at the Com- 
mercial Education Congress at Washington, Mr. John 
Geijsbeek remarked: 

"The post-graduate course seems more adequate to 
prepare a man for this work, as only a graduate pos- 
sesses that knowledge of the world so lacking in the 
college man. As business ability consists chiefly in 
grappling seriously with the daily problems, it is nec- 
essary that the training in directing ability should 
only be given to graduates and to undergraduates." 
The author does not mean by this that instruction 
should only be given to the college graduate, but desires 
rather that the course be one of college education for 

78 



PROBLEMS OF PERSONNEL 

business men than of business education for college 
men, and concludes by regretting the formalities re- 
quired of business men who seek to enter colleges 
after having acquired sound experience in the world 
of business and practical affairs. 

"I think that Mr. Gcijsbeek has put his finger on 
the weak spot in our present educational system/ ' 
remarked a business man in referring to the above. 

"Some psychologist has remarked that we remember 
only those things in which we're genuinely interested. 
And we're most deeply interested, the majority of us, 
at least, in matters pertaining to our daily problems. 
Any information which can be promptly and prac- 
tically applied to questions which confront us right 
here and now is swiftly absorbed. 

"Now the average undergraduate has only a deriva- 
tive interest in his work. He has been told that it 
will be of value to him later, but he doesn't realize 
this from first-hand experience. As a result, it is only 
by an effort of will that he masters his lessons. The 
business man, however, who has been out in the world 
and who returns for a post-graduate course, attacks 
his lessons in a very different spirit. He is genuinely 
interested. The information which he is absorbing 
becomes an integral part of his experience. It is not 
a mere appendage ' learned and conned by rote.' 

"To devise a method by which the undergraduate 
can achieve this burning interest in his work is a prob- 
lem which confronts present-day pedagogy. The best 
solution I have yet seen is that worked out by Dean 

79 



MODERN METHODS IN THE OFFICE 

Schneider of the University of Cincinnati. Here the 
students in some courses devote part of their time to 
shop work for wages in neighboring manufacturing 
plants, and the balance to class-room instruction 
which is co-ordinated with their practical labors." 

Wanted — Self-starters 

"Self-starters, that's the type which is hard to find 
in business life," said a prominent merchant. "And 
it's from their ranks that the executives are re- 
cruited. I have hundreds of loyal, efficient employees 
who are filling their own niches most satisfactorily. 
But very few of them are prepared to step into the 
job next higher up. 

"Take that man, for example." He indicated a man 
of perhaps twenty-seven or twenty-eight years of age 
who was stationed at the silk counter. "From a 
positive viewpoint, he is above criticism. He is alert, 
courteous, and a thorough salesman. He has gained 
a strong local following. He knows textiles from A to 
Z. His sales total a very satisfactory volume. He is 
an able and valued employee. 

"But, negatively, he is open to serious criticism. 
He lacks initiative; he has no knowledge of the funda- 
mentals of merchandising; he has little, if any, real 
grasp of store or department problems; he knows 
nothing of business in a large sense. Ask him how 
many times his department's stock turned last year, 
he can't tell you. Inquire as to the sales expense in 
his section as compared with that of other department 

80 



PROBLEMS OF PERSONNEL 

stores, he doesn't know. Discuss the question of the 
best method of payment in order to secure the highest 
returns, he'll look blank. You see? What he knows 
he knows thoroughly. But he lacks initiative; he is 
limited by a certain narrowness, a mental inertia which 
prevents his grappling with questions which don't con- 
front him daily. 

"We have hundreds of that type. They're faithful, 
dependable, loyal. But they never get anywhere. 
What we and every business organization need are 
more self-starters." 

The Business Man of the Future 

"There is a great deal of loose thinking displayed 
in connection with the phrase ' survival of the fittest,'" 
remarked a man who has accumulated a comfortable 
fortune through old-fashioned, conservative methods. 
"Types who are fit in one century may be utterly 
unfit in the next. Men who will score a success in 
the complex life of the city may prove utterly unfit 
when confronted with pioneer conditions. 

"The weak who seek to toady and flatter their way 
to influence may outstrip the strong who would scorn 
to descend to such methods. Unless the 'fittest' is 
qualified to mean fittest for the particular environ- 
ment in which one is placed, it means but little. A 
feeble, dyspeptic financier with a keen brain to-day 
controls the destinies of thousands of strapping work- 
ers who could annihilate him with a blow. Turn the 
clock back a few thousand years and you'd find to- 

81 



MODERN METHODS IN THE OFFICE 

day's master acting as scullion in the kitchen of the 
castle owned by to-day's dock-hand. 

"I've a theory that right now we're witnessing a 
transition period in our economic life. The type which 
commanded success in the nineteenth century will, in 
my opinion, find itself pushed to the wall in the 
twentieth. Business, which has been largely a gamble, 
a speculation, is becoming a science. The successful 
gambler must give way to the trained specialist, the 
professional business man, the business engineer. 

"Take my old friend, Fairley. Thirty years ago 
Fairley was a clerk behind the counter. But he had 
ideas, nerve, daring, and unlimited initiative. Through 
a series of successful plunges Fairley accumulated a 
fortune. To him business was an art; he loved it; 
through it he expressed himself and his temperament. 
Lately he secured control of a proposition which looked 
good to him, embarked upon a tremendous adver- 
tising campaign, and sat back waiting for the money 
to roll in. It didn't roll and Fairley dropped a quarter 
of a million dollars. Becoming desperate, he called in 
an expert to analyze the situation. 

"'The principal difficulty, Mr. Fairley/ was the 
latter's verdict, after studying the records, 'is the fact 
that this country under the most favorable conditions 
could not possibly have absorbed enough of your prod- 
uct to show you a net profit on the campaign. You 
over-advertised. An analysis of the field before a 
dollar was spent would have indicated as much. In 
other words, the day you decided upon the amount 
you were to spend, you lost two hundred and fifty 

82 



PROBLEMS OF PERSONNEL 

thousand dollars. You didn't have a chance in the 
world.' 

"The idea of proceeding in accord with the modern 
scientific methods had never occurred to Fairley. He's 
of the old school which regards business as a gamble 
and which expects to take a chance. 

"Men of that sort cannot compete with the newer 
type. They served a useful purpose in their day. 
Through their nerve and enterprise they constructed 
the great organizations which were later merged into 
our present-day trusts. But the trusts have taken the 
gamble out of business. It is to-day a matter of cold- 
blooded efficiency. 

"Be sure you're right, then go ahead, is the attitude 
of the man who has achieved the scientific outlook. 
And before he takes a step he spends months in anal- 
ysis, research, and experiment. How often do you see 
a chain store close its doors? Mighty seldom. And 
the reason is that weeks of study and observation 
were devoted to selecting a location. And once 
opened, it is scientifically, that is to say, efficiently, 
conducted. 

"No, the reins will be held by a very different type 
from now on. Nerve and dash will give way to knowl- 
edge and science. The dynamic, energetic men will 
fall before the quiet, studious plodders. The scientific 
brain, with its cold, implacable insistence upon facts, 
will dominate the artistic temperament with its flashes 
of inspiration. Personality, temperament, brilliancy 
— all these will acknowledge sheer intellect as their 
master. Men's environment is changing rapidly. And 

7 83 



MODERN METHODS IN THE OFFICE 

the fittest under the new regime will be the business 
scientist." 



Character Analysis in Selecting Employees 



tn 



The real point of the controversy now raging re- 
garding selection of employees by character analysis," 
said an executive, "is not whether one's traits can be 
determined by his appearance, but rather whether this 
information can be practically applied. 

" Generally speaking, we are what we look — every 
one knows that. No one ever saw a man who looked 
like Abraham Lincoln or Daniel Webster conducting 
a peanut-stand. Or if he did, he found that the 
person thus distinguished soon pulled himself up to a 
higher level. 

" Every one who is equipped with ordinary percep- 
tive powers is able to size up his fellows with some 
degree of accuracy. But the disciples of physiognomy 
and phrenology assert that they have developed this 
ability into a real science, with the result that they 
can give a complete and convincing analysis of the 
subject's characteristics, thus enabling an employer 
to assign an applicant to the one right job. 

"I do not question that a physiognomist or phre- 
nologist can read a subject more intelligently than can 
one who has never studied the science, but I do doubt 
whether their work is of great practical value. Roughly 
speaking, I would estimate the importance of the vari- 
ous factors entering into the judgment of an appli- 
cant's suitability about as follows: 

84 



PROBLEMS OF PERSONNEL 

1. Past Record, 30 per cent. 

2. Demonstrated Experience and Ability, 40 per cent. 

3. Personal Impression, 20 per cent. 

4. Physiognomy and Phrenology, 10 per cent. 

" Items 1 and 2, which appear to be synonymous, 
are differentiated in my mind by applying the phrase, 
'Past Record ' to such qualities as stability, honesty, 
reputation, etc., and the phrase 'Demonstrated Ex- 
perience and Ability/ to the educational advantages 
and actual technical experience of the man. Number 
3, Personal Impression, applies to the sizing-up process 
involved in any interview of this nature. Number 4 
is self-explanatory. 

"Now, of course, this estimate of the importance of 
the factors to be considered would vary with different 
jobs. If I were hiring a stenographer, 'Demonstrated 
Experience and Ability ' would figure much larger. 
Actual tests would tell practically the whole story. 
Similarly, in employing a commercial artist, or copy 
man in an advertising agency, the samples of the work 
submitted would be the determining point. But in 
securing an executive, a salesman, or a man for any 
position in which it was more difficult to ascertain 
the applicant's qualifications, Number 1, Past Record, 
and Number 3, Personal Impression, would, of ne- 
cessity, loom larger. 

"Another factor to be considered is the man doing 
the hiring. Some people are singularly obtuse as 
regards their perceptive faculties. We call them 'poor 
judges of character/ A man of this type would rate 
Number 4 higher and Number 3 lower. Most pec^ 

85 



MODERN METHODS IN THE OFFICE 

who have investigated physiognomy and phrenology 
have become convinced that there is a great deal in 
them. But as to the practicability of applying them 
to the selection of employees, that is another question. 
Probably their most devoted adherents overrate their 
efficacy — their bitterest critics underrate their value." 

To-morrow's Executives 

"'The great trouble with the school of experience/ 
Henry Ford once remarked, 4s that the course is so 
long that the graduates are generally too old to go to 
work.'" It was the general manager of a great whole- 
sale house speaking. 

"That's a point I seek to impress upon the young 
men employed here. Too many of them do the tasks 
set for them faithfully and earnestly, but seem to 
utterly lack any real grasp of the business. As soon 
as they walk out of the door they dismiss their jobs 
from their minds and never think of them until the 
next morning. 

"Now I want to bring forward a squad of winners 
here. I want every youngster in the place to make 
good. Not merely because we ourselves will need 
executives in the future, but for their own sakes. I 
urge our employees to profit by the other man's ex- 
perience. In other words, to read and study business 
literature outside their working hours. Between the 
correspondence schools, the various night courses given 
by local institutions, and the vast volume of books 
and business magazines, there is little excuse for a 

86 



PROBLEMS OF PERSONNEL 

man's not gaining much of his knowledge via short-cut 
routes, nowadays. 

"A man who follows this policy should, by the age 
of thirty, be better equipped than the ' school of ex- 
perience' man at fifty. And it's the man who preserves 
the student's attitude toward business who will hold 
the big jobs in the future. 

"My son is taking a course in business at one of the 
great universities. Assuming that he possesses good 
common sense and ordinary diligence, this training 
should be worth ten years of commercial life. He'll 
have that much start on the man who lacks that ad- 
vantage. But the omission of such a course is not 
a fatal handicap. Knowledge gained by extra effort 
generally sticks. The young fellow who gains his edu- 
cation in business through evening study may nose 
my boy out at the tape. 

"But somehow, somewhere, this additional knowl- 
edge, this power of profiting by the other man's hard 
knocks, must be acquired. Otherwise some one pos- 
sessing the extra equipment will be sitting in a private 
office, 'in a position,' while the chap who was merely 
content to do just enough to hold his job will be doing 
just that — 'holding a job.'" 

Keeping Executives on the Jump 

"There are altogether too many executives who 
make a good showing for a few months after receiving 
their appointments," said the president of a great or- 
ganization, "and then proceed to relapse into mere 

87 



MODERN METHODS IN THE OFFICE 

routine men; types who get through their day's work 
satisfactorily, but who never devote any real concen- 
trated thought to their problems outside business 
hours. 

'"The human brain is a strange instrument. I think 
it was Emerson who remarked that we're all as lazy 
as we dare to be. Certain it is that the vast majority 
of people resent, and, if possible, evade, the effort re- 
quired to attack and assimilate new ideas. 

"Some time ago I became conscious of a spirit of 
loginess which seemed to be gradually pervading our 
organization. Production and sales were increasing, 
to be sure, but I had reason to believe that those of 
our competitors were increasing at a proportionately 
greater speed. Now it is utterly impossible for me to 
be a specialist in every branch of our business. That's 
what I have executives for. But because of the loca- 
tion of my office, I keep fairly closely in touch with the 
office manager's problems. 

"I am an omnivorous reader of business literature. 
I read several business monthlies systematically and 
one weekly. In addition to this, I have a library 
of over three hundred volumes on various phases of 
business which I have read from cover to cover. I 
expect my executives to subscribe to and read the 
publications which apply to their particular specialty. 

"One day I read an account of what had been 
achieved in the office of a great publishing-house by 
careful selection, proper training, and piece-work pay- 
ment of stenographers. I clipped the article and had 
it filed in my tickler to come up for attention within 

88 



PROBLEMS OF PERSONNEL 

three weeks. This article appeared in a magazine to 
which my office manager subscribed. 

"When the article turned up, I sent word to this 
executive that I'd like to see him. 

"'Have you any ideas about increasing the efficiency 
of our force of seventy typists and stenographers?' I 
inquired. 

"He confessed that he hadn't. Couldn't see but 
that everything was running smoothly. 

"'You can easily cut expenses sixty per cent, merely 
by applying the principles explained herein/ I remarked, 
and handed him the clipping. 'That's from a magazine 
to which you subscribe. Better read it more closely.' 

"Then I made a tour of the place. It seemed as 
though in the office of every executive I saw stacks of 
trade magazines, most of which had obviously never 
been read. Some were in the original mailing wrappers. 
The sales manager, the credit-man, the purchasing 
agent, the technical men out in the plant, the adver- 
tising men — everywhere I went I found men hard at 
work and gaining nothing new. They seemed like 
squirrels in a cage, desperately busy and getting no- 
where. I verily believe that many of those men knew 
no more about their work January 1st, 1918, than they 
did January 1st, 1917. 

"I went back to my office, nonplussed. Then I 
called each man into conference separately and ex- 
plained why it was necessary for our success for us all 
to keep right up to the minute. 

"'I want to see you men grow/ I said. 'I want you 
to be bigger, broader, abler men every year. None 

89 



MODERN METHODS IN THE OFFICE 

of us knows it all. We've all got to keep wide awake 
or our competitors will beat us to it. From now on, 
every week, I'm going to send each of you a typed slip 
giving the barest digest of what new data I've learned 
about business during the previous seven days. It 
won't comprise over two hundred words, but it will 
deal with what I've gained from the perusal of a good 
many thousand words. And every week I want to receive 
the same sort of report from each of you. 

"'This will help us to keep on the qui vive and we'll 
adopt every new plan or device for increasing produc- 
tion or sales and decreasing expense within seven days 
after it gets into print. Are you on?' 

' ' They were on. And when I tell you that that simple 
device has increased the net profits of this concern 
seventy-five thousand dollars annually already, I have 
the figures in black and white to support my assertion — 
I mean seventy-five thousand dollars directly traceable 
to ideas thus acquired. And the plan has been in op- 
eration less than a year." 

A Royal Road to Experience 

"When I was a young man," said the elderly presi- 
dent of a great corporation, "the only way to learn the 
ropes in business was through experience. It was a 
long, hard, and wasteful method. Such a thing as 
business literature, educational courses in business, 
etc., were unknown. To-day, however, the young man 
who is ambitious can gain twenty laps on the field by 
devoting his spare hours to a study of the literature 

90 



PROBLEMS OF PERSONNEL 

pertaining to his subject. That there should be any 
who fail to avail themselves of this opportunity passes 
my comprehension. 

"To illustrate: The other day in the smoking-com- 
partment of a Pullman, I fell into conversation with 
a youngster in his early twenties. It transpired that 
he was an efficiency expert and that he specialized upon 
department-store problems. Claimed that he had just 
succeeded in reducing the annual expenses of one 
client over two hundred and fifty thousand dollars; 
this with no sacrifice of efficiency. What this young 
man's income is I don't know, but, obviously, any one 
who can achieve results on that scale can come pretty 
close to naming his own price. His clear and lucid 
explanation of just what steps he had taken to effect 
these savings was sufficient evidence of the truth of 
his claims. 

"'But how in the world did a man your age ever 
accumulate so vast a store of information along busi- 
ness lines?' I inquired, after he had concluded his 
narrative. 

"'Some four or five years ago I went to work for 
a manufacturing plant which at that time was being 
subjected to a thorough overhauling by an efficiency 
expert/ he explained. 'That was what started my 
mind working in that direction. The rest was simply 
a result of reading business books and magazines dur- 
ing my spare moments. My ability is no more than 
average. But, undoubtedly, I have more actual knowl- 
edge of business than most men. Through reading I 
have gained my experience by proxy. Now I'm be- 

91 



MODERN METHODS IN THE OFFICE 

ginning to cash in on it. Why, there are enough 
business books given free of charge to-day to give a 
man a pretty good start. But lots of young fellows 
are too blamed lazy to read them even under those 
conditions. 

"'Take the Burroughs Adding Machine Company, 
for instance. A post-card to them will bring A Better 
Day's Profits and Efficient Cost-keeping, two splendid 
books on business. Remington Typewriter Company 
give a valuable little book called Cutting the Cost of 
Stenographic Service. American Sales Book Company, 
of Elmira, New York, issue a book entitled Where 
Have My Profits Gone? which is invaluable to the re- 
tailer. Butler Brothers, of Chicago, distribute Success 
in Retailing and The Butler Way System Book, two 
works which every retailer should possess. The Beckett 
Paper Company, of Hamilton, Ohio, give a book called 
Principles and Practice of Direct Advertising. The 
American Multigraph Sales Co., of Cleveland, Ohio, 
issue several books on direct advertising. And all 
these, you understand, are free of charge. 

"'Then, of course, a vast number of business books 
are for sale by various publishers who specialize in this 
field. By reading them one gains in a few hours the 
combined experience of many men for a long period 
of years. 

"' There may be no royal road to learning, but 
systematic reading of business literature comes about 
as close to being a royal road to experience as any of 
which I can conceive. And experience applied is 
quickly translated into money.' 



92 



PROBLEMS OF PERSONNEL 

" Make Applicants for Credit Pass an Examination," 
says this Credit-man 

"Bradstreet's organization attributes thirty per cent, 
of all failures to incompetence, and twenty-nine per 
cent, to lack of capital/' said the credit-man of a 
wholesale house. "But I lump both these items to- 
gether under the single word incompetence. This 
gives us the latter reason as the cause of nearly sixty 
per cent, of failures. 

" Incompetence is due to lack of native intelligence 
or lack of experience, or both. What is the lesson 
to the credit-man in these figures? Merely that he 
should ascertain by a searching series of questions 
just what the applicant knows about the conduct of 
business. 

"An incompetent man will select a poor location, 
or will mark his goods too high or too low, or will 
overstock, or will hire discourteous clerks, or will 
permit store leaks to continue unnoticed. 

"It is amazing how little many small dealers know 
about merchandising. They have no idea of system; 
no grasp of the significance of turnover, no ideas re- 
garding checking their cash against their inventory, no 
real knowledge of their costs. 

"The plan of subjecting applicants for jobs to writ- 
ten examinations is being widely adopted. I would 
not be surprised to see the same idea applied to appli- 
cants for credit. When a concern advances credit, it 
is merely loaning so much money. To demand that 
the borrower demonstrate his fitness to receive the 

93 



MODERN METHODS IN THE OFFICE 

loan would seem to be but reasonable. I do not claim 
that this would, in all cases, result in just decisions. 
But I do believe that it would constitute a forward 
step in securing accurate information upon which to 
base one's judgment." 

Democracy in Management 



a 



My conception of a good executive is that of a 
man who, if engaged in educational work, would make 
an able teacher, " remarked a man who bears an 
enviable record for securing the support and loyalty 
of his subordinates. "Just as our schools are filled 
with children who sit in a state of bored and apathetic 
stupefaction while a harassed pedagogue seeks to ham- 
mer home that astounding assortment of incongruous 
and disconnected data which is called an education, so 
industry is manned largely by an army of time-servers 
and clock-watchers whose sole object is how to do as 
little as possible and get the most for it. 

"Who is to blame for this condition — the pupils or 
the teachers? the workers or the executives? In each 
case I hold the latter responsible. Or, to be fair in 
the former instance, I hold the Boards of Education 
responsible. 

"Most schools are conducted to-day on the old, 
autocratic idea. 'Sit still and listen attentively, or it 
will be the worse for you' — that is the teacher's atti- 
tude. t Do your work and do it quickly and accurately, 
or you'll get the blue envelope' — that is the executive's 
attitude. 

94 



PROBLEMS OF PERSONNEL 

"Now, then, the result of all this is that the rank 
and file in each case feel no interest in the organiza- 
tion; the tremendous dynamic force of the group 
spirit, that spirit which animates the successful army 
or the victorious football eleven, is utterly lacking. 

"In school, the pupils are commanded to do a certain 
thing and they do it, perfunctorily, half-heartedly. 
They don't know what it's all about, neither do they 
care. The same applies in great measure to offices. 

"But just try the experiment of consulting with 
your pupils or employees, rather than dictating com- 
mands, and watch the well-nigh instantaneous change 
in attitude. Promptly appears the reaction to re- 
sponsibility, that latent force which lies within every 
normal person. 

"The task in hand immediately assumes an entirely 
different complexion. A citizen of a democracy is far 
more interested in the commonwealth's welfare than 
is the inhabitant of an autocracy. He feels a sense of 
proprietorship, and reacts accordingly. In the George 
Junior Republic destruction of property and lawless- 
ness at once ceased upon the allotment to each ' citi- 
zen' of his own vine and fig-tree. 

"In a book on the Gary schools of Indiana, Mr. 
Randolph Bourne says: 

Some visitors, appalled by the freedom of the Gary schools, 

look about for signs of depredation. But they do not seem to 

find any. The visitor gets the impression that these schools have 

acquired a " public sense." The schools are the children's own 

institution, and are public in the same broad sense that streets 

and parks are public. The tone is of a glorified democratic club, 

95 



MODERN METHODS IN THE OFFICE 

where members are availing themselves of privileges which they 
know are theirs. One expects children, unless they are challenged 
to inventive wickedness, no more to spoil their school than a lawyer 
is likely to deface the panels of his club. 

"The Gary schools represent, perhaps, the most 
radical application of democracy to education that 
the world has yet witnessed, at least on so large a scale. 
And because the youngsters are encouraged to reach 
out for knowledge instead of having it bludgeoned in, 
they evince an enthusiasm and interest in their work 
which has startled the world of pedagogy. 

"Similarly, a democratic management evokes a spirit 
of willing co-operation on the part of workers. No mere 
formulae, however, will secure this result. The execu- 
tives must undergo a rather radical transformation in 
their own attitudes to achieve any very lasting re- 
sults. Profit-sharing, self-government, delegation of 
responsibility— all these are symptoms of the type of 
organization which has achieved democracy and which 
reaps the benefit in the shape of an alert, interested 
force of workers. 

"But first we must grasp the idea of democracy in 
management in an abstract sense. The methods of 
application will immediately suggest themselves." 

What Makes a Successful Executive? 

In the course of a report on Vocational Guidance, 
Dr. Henry Clayton Metcalf, of Tufts College, Massa- 
chusetts, formulated the following interesting table of 
qualifications for an executive: 

96 



PROBLEMS OF PERSONNEL 

In selecting and developing leaders an appreciation of the fac- 
tors or characteristics essential to efficient, successful leadership 
should be clearly formulated and carefully borne in mind. The 
essential characteristics of the successful executive may be said 
to fall under the following headings: 

1. Character, integrity, resourcefulness, initiative, responsibility. 

2. Imagination.— No man is a true leader who cannot project 
himself into the future. He must have ideas and ideals in order 
to lead. 

3. Judgment.— A man must have perspective to see how many 
of his ideals are workable. He must have a scientific attitude 
— soimd common-sense. 

4. Courage.— Many men with good imagination and lofty ideals 
fail because they lack true courage. They are timid or they try 
to please everybody. Hence they do not go forward as leaders. 

5. Efficiency.— -This comprehends the habits of hard work, thor- 
oughness, and constant accuracy. True efficiency comes from 
native talents for a particular line of work, plus special training, 
plus experience, plus devotion to the task, plus generosity in the 
work, plus conscience. 

6. Understanding of Men.— This is more than mere knowledge 
of men. This is the most crucial test of genuine executive ability. 
Executives must not only know human nature, have a knowledge 
of men, but literally understand them, be able to sympathize with 
them, put themselves in the place of those under them, and ex- 
ercise a "puU" from the bottom upward, and not a "drive" or 
"push" from the top downward. This understanding of men and 
the wise leadership of subordinates are the real tests of organiza- 
tion fitness. 

7. Sound knowledge of the fundamentals of the industry and or- 
ganization of which the executive is a part, and a knowledge of 
business or trade in their largest aspects. Many executives are 
inefficient and get into all sorts of trouble because they are not 
properly trained in the business in which they are to issue and 
execute orders. 

8. Skill, which comes from the technique of practice and of 
business experience generally. 

97 



MODERN METHODS IN THE OFFICE 

9. Courtesy. — Men and women are more and more grasping the 
business value of fair, courteous treatment. The response to the 
appeal to high ideals is definite, but discourteous treatment reaps 
unsatisfactory results. "Industry awaits the administrator who 
shall be all that a gentleman should be: efficient but humane, 
adroit but honorable, a lover of his fellow-men as well as a leader 
of them; and who shall use his power with gentleness, and his 
wealth with imagination, and shall illuminate the world of private 
property with light from the far-away interests of the heart." 

If this be a correct conception of the essential fac- 
tors of a successful executive, it should furnish a stand- 
ard in discovering, selecting, and developing executive 
organization, and point out methods of instruction 
and educational procedure. 

The head of a large industrial concern must first 
define in his own mind the product he desires from the 
various duties to be performed. In sizing up men, 
especially young men, for training and promotion to 
executive positions, he is exercising his most funda- 
mental and vital function. The selection, training, 
and functioning of executives determine the entire or- 
ganization. 

A Passage from Exodus Solved this Business Man's 

Problem 

"The expansion of the business of the man who can- 
not bring himself to delegate his duties and authority 
is limited to the amount of detail that he can per- 
sonally oversee, " said the proprietor of a manufac- 
turing plant. 

"I shall never forget a word of advice which was 

98 



PROBLEMS OF PERSONNEL 

given me many years ago when I was acting as super- 
intendent of a factory. I could not bring myself to 
relinquish responsibility to my lieutenants, and, as a 
consequence, worked fourteen to sixteen hours a day. 
Finally it was decided to double the capacity of our 
plant. The president of the concern called me into 
his office one day. 

"'Well, we've concluded to enlarge/ he remarked, 
'and it will mean a lot more work for you. Your 
health is beginning to break under the present strain. 
How are you going to stand up under the added 
burden? 

"'Now, Morgan, you've got to get a new slant on 
your job. You've got to learn to delegate your duties. 
When you go home to-night, you read Exodus eighteen : 
seventeen-twenty-six carefully and come down in the 
morning prepared to select some good timber to lighten 
your load.' 

"For a moment I thought the old man was wandering. 
But when I got home I did as he suggested. Here is 
what I read: 

. . . The thing that thou doest is not good. Thou wilt surely wear 
away, both thou and this people that is with thee; for this thing 
is too heavy for thee; thou art not able to perform it thyself alone. 
. . . Thou shalt teach them [the people] ordinances and laws, and 
shalt shew them the way wherein they must walk, and the work 
that they must do. ... So Moses hearkened to the voice of his 
father-in-law, and did all that he had said. And Moses chose 
able men out of all Israel, and made them heads over the people, 
. . . rulers of fifties and rulers of tens. And they judged the people 
at all seasons; the hard causes they brought unto Moses, but every 
small matter they judged themselves. 
8 99 



MODERN METHODS IN THE OFFICE 

"I saw the point. It was not long before I began to 
see that not all the brains of our organization were 
concentrated in my cranium. I selected and developed 
several able lieutenants. This left me more time to 
consider the plant's future needs. I began to get a 
more comprehensive grasp of our problems. From 
the reading and digestion of that passage of Exodus 
dates my development into a real business man. ,, 

Have You Perspective? 

"You must have perspective — a breadth of view — 
in order to achieve success in business/ ' says a booklet 
issued by a well-known correspondence school of ac- 
counting. 

"This is the age of specialization in business, for 
it is by means of specialization that the greatest profit 
returns are secured. Every large business organiza- 
tion is divided and subdivided into departments and 
sub-departments, with relatively few managerial posi- 
tions, and with scores of routine positions filled by 
routine employees. Each functions in his own narrow 
groove, with no opportunity of widening his perspec- 
tive of the work of the organization as a whole. 

"The bookkeeper posts away at his ledger, thinking 
only of the schedule that must balance. The stock- 
clerk earns his weekly wage by checking up invoices 
of goods purchased and bills of goods sold, with now 
and then an inventory of goods on hand. The cashier 
thinks by day and dreams by night of petty cash, 

pay-rolls, discounted bills, and extensions of notes. 

100 



PROBLEMS OF PERSONNEL 

The salesman frets over his failure to sell X, Y 
Company in the town of Z a double order of worsted 
fabrics, and spends his mental energy in devising new 
methods of selling-approach. The publicity man puts 
his mind day in and day out on newspaper space, 
pictorial booklets, display type, and special adver- 
tising campaigns. 

"And so it goes, each employee doing his particular 
work and trying to do it well, in order that the monthly 
report of each department to the general manager may 
show that it is doing its share in the attainment of the 
profit object of the organization. 

"How much do you know of the work of your organi- 
zation aside from your specialized duties? 

"Specialization has come to stay, and will doubtless 
be carried to even greater extremes in the future as 
enterprises continue to develop and become more 
complex. There are, however, to-day many signs of 
the growing conviction on the part of business or- 
ganizations themselves that individual specialization 
must be accompanied, or, better still, preceded by, 
the development of individual perspective. 

"The progressive business organizations of the pres- 
ent day have come to realize that their future business 
development — in fact, their future business existence 
— depends upon the development of managerial ca- 
pacity in their individual employees. Many organi- 
zations, indeed, have turned schoolmaster and are 
conducting classes on company time and at company 
cost in Accounting, Law, Applied Economics, and in 

the related subjects of Finance and Management in 

101 



MODERN METHODS IN THE OFFICE 

order to give selected groups of their employees a 
broad perspective of business as a whole and as applied 
to the particular needs and conditions of the organiza- 
tions themselves. Other organizations are encourag- 
ing their employees to pursue outside studies, in many 
cases paying their tuition charges. 

'It is impossible for the average man employed by a 
large organization to gain from his routine position a 
broad view of its workings as a section of the entire 
organization. He has neither the time nor the oppor- 
tunity. The only thing he can do, therefore, is to take 
up an evening course of study which will supply him 
with the broad perspective of business necessary for 
his advancement. " 

Piece-work vs. Day-work 

"The piece-work plan of payment, if combined with 
measures which will serve to correct the worker's 
tendency to feel satisfied with a certain minimum in- 
come, is doubtless one of the best systems for insuring 
a high output and predetermining labor costs," said 
an executive, recently. 

"But in some plants the nature of the work is such 
that the piece-work idea is impracticable. Uniformity 
of output is necessary to its successful application. 
In such instances, the desirable personal-incentive 
element which is present under the piece-work system 
is injected by the following method: 

" Operatives are timed to such a degree that it is 

possible to estimate the standard time required for 

102 



PROBLEMS OF PERSONNEL 

a job of any nature which may come into the shop. 
With each allotment of work goes a ticket giving the 
cost allowed for its completion. The worker who is 
paid a regular hourly rate can then figure the time 
allowed. 

"If he completes the job before the specified hour, 
he is credited with the difference; if after, debited. If 
he shows consistent gains, at pay-day his rate of pay 
is increased; if losses, and an investigation shows 
that the time estimate is reasonable, he is shifted to 
another department or discharged. 

"Thus, although the men are employed on a day- 
work basis, the advantages of the piece-work system 
are preserved." 

How to Insure a Satisfactory Volume Under a Piece- 
work System 

"One would think that men working on a piece- 
rate basis would be inclined to exert eveiy effort,' ' 
said the superintendent of a large plant, "but the fact 
of the matter is that human nature is such that some 
men will actually do less work on a piece-work basis 
than on a day-work. They are inclined to feel that 
it makes little difference to their employer as to 
whether or not they work hard, and, consequently, 
when they have a little money saved up some are 
inclined to slacken their efforts. 

"Now, as a matter of fact, an employer is just as 
interested in securing a big output on a piece-work 
basis as he is on a day-work. For the overhead burden 

103 



MODERN METHODS IN THE OFFICE 

remains practically the same, however the volume may 
vary. 

" Several plans are in practice for maintaining a 
high average of effort among piece-work workers. 
Some firms pay a bonus at the year's end, comprising 
a percentage of a man's earnings, the percentage in- 
creasing in proportion to the level of production main- 
tained. Others apply this idea, but on a monthly or 
weekly basis. And finally a drastic but effective 
stimulus is to discharge those workers who are absent 
from work too often or whose output falls below a 
certain standard. 

"One thing is certain: the mere installation of the 
piece-work system does not insure great volume. 
Other measures are necessary to effect this result." 

"Profit-sharing Means Permanent Employees," 
says this Executive 

"We have operated on a profit-sharing basis for 
fifteen years," said Mr. Arthur F. Lewis, of the Sim- 
plex Wire and Cable Company, of Cambridge, Massa- 
chusetts, a concern employing several hundred men. 
"And the fact of our retaining the system is evidence 
of our successful experience of it. 

"The chief advantage accruing from profit-sharing is 
that it tends toward the establishment of a permanent 
working force. What this means in added profits is 
known to every executive who has figured out the loss 
occasioned by the necessity of constantly breaking in 
new hands. 

104 



PROBLEMS OP PERSONNEL 

" Furthermore, profit-sharing is a strong influence 
in eliminating strikes and labor disputes. By empha- 
sizing the fact that the interests of both factors, em- 
ployers and employees, are identical, profit-sharing 
tends toward the maintenance of harmonious relations. 

" Profit-sharing, furthermore, puts the employees to 
a great extent upon their own responsibility. They 
feel a certain sense of proprietorship in the establish- 
ment and will not tolerate soldiering and carelessness 
upon the part of certain employees who may not 
respond to the added incentive. 

"I doubt, however, if this system has a very marked 
effect in increasing the actual daily output. Because 
dividend payments are made only once a year, the incen- 
tive for added effort is perhaps too remote. 

" A bonus system of payments, however, supplies this 
missing stimulus. In the departments in which it is 
practicable, we operate on this basis. Thus we combine 
the two methods: profit-sharing to insure stability of 
our pay-roll; a bonus system to increase the actual daily 
output. This, it seems to us, is the ideal combination." 

A survey of the actual mechanism of this plant's 
profit-sharing plan reveals some interesting data. 

In order to avoid supplying competing concerns 
with information regarding the company's profits, the 
management does not tell its employees the percentage 
of profits it pays, but merely assures them that a cer- 
tain percentage has been fixed and that it will be main- 
tained unless, as has occurred on three occasions, it is 
increased. 

105 



MODERN METHODS IN THE OFFICE 

Dividing the amount of profits to be distributed by 
the actual pay-roll gives the per cent, of dividend on 
each man's wages which is to be paid to him. To pro- 
tect themselves against any extraordinary diminution 
of the actual pay-roll, as well as a protection against 
a possible unexpected profit, the management limits 
the dividend to a maximum of 20 per cent. 

One year the dividend amounted to 18 per cent, of 
a man's annual wages. In 1915 it came to but 7 per 
cent. No one is eligible to share in the profits until 
he has been employed at least twenty-six months. 

The dividend is paid at noon on the last Friday in 
February. The men are urged to make good use of 
the money and those wishing to go to the bank to 
deposit the sum received are allowed to go on the 
company's time. 

In the envelope containing the money is included a 
printed slip reading as follows and filled out to fit 
each individual case: 

201 Devonshire Street, Boston, Mass. 

19.... 

M 



The profit-sharing statement for 19. . . . is as follows: 

Total wages of all Profit-sharers . . . . $ 

Total dividend to Profit-sharers . . . . $ 

Dividend is % on wages. 

Your wages amounted to $ and your dividend is 

, which amount please find inclosed. 

Yours truly, 

Simplex Wire & Cable Co. 
106 



PROBLEMS OF PERSONNEL 

In a recent address the president of the company, 
Mr. Everett Morss, said: 

Our profit-sharing was started not as a charity, but as a business 
move, and after twelve years' experience we are convinced that 
it has contributed to our financial welfare as well as to our satis- 
faction in the conduct of the business. 

Our success would seem at least to justify the serious considera- 
tion of the idea by other employers. 

We believe it should be equally successful in other places, 
though what are its limitations and what are the peculiarities of 
our conditions that might cause it to be more successful with us 
than elsewhere, we hesitate to say. 

Think! 

"Ideas!" remarked the manager of a large business 
organization, recently, during the course of an address 
to his force, "that's what we want from our men. 
Ideas applied to inert matter have created civiliza- 
tion. You can buy a ton of pig iron for twenty dol- 
lars. Inject an idea — convert it into horseshoes — 
and you've added seventy dollars to its value. Com- 
bine it with still more ideas — manufacture cutlery — 
and you've added one hundred and eighty dollars. 
Mix in some more ideas — turn it into watch-springs — 
and you've increased its value nine hundred and 
eighty dollars. 

"An idea regarding 'acid mouth' and a test for the 
condition occurred to an advertising man who was 
writing copy for a dentifrice. Probably that idea has 
been worth one hundred thousand dollars or more to 
the concern. 

107 



MODERN METHODS IN THE OFFICE 



ai 



I wonder if there isn't some way of combining 
the big -scale production efficiency of the ready- 
made - clothing manufacturers with the more satis- 
factory fit of the made-to-order suits? ' reflected a 
young man a few years ago. His idea of a solution 
of the problem resulted in the establishment of an 
immense concern which clothes hundreds of thou- 
sands of men. 

"An idea regarding shipping knocked-down houses, 
coupled with a few dollars for an ad. inserted some 
nine years ago, resulted in the present immense busi- 
ness of the Aladdin Company. Over forty houses are 
shipped from their plant daily. 

"'Let's turn out our baking-powder in a case with 
a handle,' suggested the manager of a concern making 
this product. The idea made a hit with housewives. 
The demand for the baking-powder showed a distinct 
increase. 

"Speaking of baking-powders, do you know who 
originated them? Back in 1852 Dr. Vincent Price 
was disturbed by the fact that his mother's dyspepsia 
prevented her eating yeast bread. As a student of 
pharmacy he was well equipped to seek a substitute 
for yeast. The result was baking-powder. With this 
idea and less than three thousand dollars capital, 
young Price started to manufacture commercially. 
Less than forty years later he sold the business his 
idea had created for a million and a half dollars. 

"Ideas make the world go round," concluded the 
speaker. "And no one has cornered the market. 
Don't be mere routine men. Think! Submit your 

108 



PROBLEMS OF PERSONNEL 

ideas to the management. If they're practicable, 
you'll find the concrete evidence in your pay-envelopes. 

"You may have an idea before the whistle blows 
to-night that will save us one hundred thousand dol- 
lars. The late Elbert Hubbard claimed that he once 
sold an idea, undeveloped and unperf ected, for seventy- 
five thousand dollars cash, and that the purchaser 
made a good investment. 

"We have three thousand men and women on our 
pay-roll. The combined ideas lying latent in those 
three thousand brains will serve to establish us as the 
leading concern in our field in the world. And the 
bigger we grow, the more we'll all prosper. Think!" 



Ill 

POINTERS ON SYSTEM 
A File within a File 

In most business offices correspondence is now filed 
alphabetically rather than by the former system of 
first numerically and then alphabetically. 

But one concern has found that even this plan can 
be improved upon. Often, for instance, a mass of 
correspondence for a certain customer centered upon 
a particular job. But the folder contained this and 
other correspondence from the same customer indis- 
criminately assembled. To sort it required valuable 
time, often that of a high-salaried man. 

A remedy for this condition was found. 

Thin sheets of cardboard the size of a letter-head, 
perforated with three holes on one side, were supplied 
to the filing-clerk. Correspondence and data relating 
to a specific order were then securely fastened together 
by the use of fasteners which passed through similar 
perforations in the documents. 

This plan put a little more work on the shoulders 

of the filing-clerk, but saved the time of every one else 

in the office. A simple device, but one worth while. 

no 



POINTERS ON SYSTEM 

Furthermore, it is applicable to a great many lines of 
business. 

For the Office Employee 

"The index tabs on our filing system were constantly 
becoming soiled and bent," said a filing-clerk. "How 
to prevent this condition was the problem which con- 
fronted me. Finally I tried the experiment of brush- 
ing a thin coat of shellac over them as soon as they 
were installed. It stiffened the tab ; kept the lettering 
from becoming undecipherable; tripled the life of the 
tab." 

"Often in the course of my work I have to make 
many carbons of the same letter or document," said 
a stenographer. "I found that the insertion of a strip 
of celluloid between the last sheet and the platen re- 
sulted in much cleaner copies. It made the final 
copy of a series of six as clear as though it were the 
second or third copy under ordinary conditions." 



The Filing System — How Perforations Enable One to 
Instantly Locate a Misplaced Card 

"Mr. Coburn!" The peppery general manager's 
voice disclosed irritation. 

"Yes, sir," replied the office manager. "What is it 
now?" he reflected, as he approached the chief execu- 
tive's desk. 

in 



MODERN METHODS IN THE OFFICE 



tt 



What in Heaven's name is wrong with our riling 
system?" demanded Palmer. "For the third time this 
week I've failed to find a customer's card in its proper 
place. The first time it required two days' work for 
the filing-clerk to discover it; the second time was 
nearly as bad. And now here's another case. I can't 
find Grant ley's card." 

"Well, Mr. Palmer, mistakes will occur," said Co- 
burn, propitiatingly. "And I've never heard of a sys- 
tem of locating a lost card without going through the 
entire assortment." 

"Find a system, Mr. Coburn," ordered Palmer, 
peremptorily. "If you can't find one, invent one." 

And as Palmer's 'phone rang, Coburn retreated in 
discomfiture, happy to be spared a resumption of the 
discussion. 

Consultations with various filing experts finally 
unearthed a system which Coburn promptly in- 
stalled. 

Here it is described: an adaptation of the Bertillon 
system. The principle is simple in the extreme : merely 
that of perforating cards, belonging in the same sub- 
division, similarly. In case of a card's being mis- 
placed, by holding groups of cards to the light and 
peering through the perforations the presence of a mis- 
filed card is promptly disclosed by the fact that one 
of the holes presents an opaque obstruction. 

Each card in Coburn' s filing-cabinet is now equipped 

with a space at the right edge which appears as 

follows : 

112 



POINTERS ON SYSTEM 



j 


GUIDE NO 


I 


1 


i 


8 


i 


) 


o 


o 


o 


o 


I 


o 


O 


» 


O 


j 


z 


z 


z 


z 


( 


3 


3 


3 


3 


) 


4- 


u- 


M- 


«+ 


s 


5 


5" 


5" 


5" 


} 


b 


to 


G 


b 


1 


7 


1 


1 


7 


\ 


% 


9 


6 


% 


\ 


<? 


• 1 


<* 


*$ 



Each guide in the system is allotted a number which 
applies to all cards covered by that guide. Let us 
assume that the guide reproduced 



y 



V/A -WE 

1 1 « i 



be numbered ll 81. Then a customer named Walters 
would be filed under that guide. The card would 
then be punched as indicated, 1181, to agree with 
all the cards contained under the guide 1181. 

The merit of this plan is obvious. If a card is mis- 
placed, instead of laboriously inspecting each one in 
the cabinet, the offending card is promptly detected 
merely by holding the cards covered by each guide 
number to the light. If no obstruction appears, there 

113 



MODERN METHODS IN THE OFFICE 

are twenty-five or thirty cards accounted for as O. K. 
When the vision is obstructed, there lies the missing 
card. It means merely wholesale inspection rather 
than retail. And the saving in time and bother is 
well worth the moment or two consumed in punching 
a new card to correspond with those filed in its par- 
ticular section. 

Filing Facts 

"Much sarcasm has been indulged in at the expense 
of filing systems/' said an office manager, "and much 
of it is deserved. For example : Smith sneaks furtively 
into Brown's office and remarks: 

"'I'm carrying some valuable documents which I 
wish to hide. What can you suggest?' 

"'Put 'em in my files/ replies Brown. 'Nobody ever 
finds anything there.' 

"One mistake often made is to seek to apply similar 
systems to utterly different lines of business. There 
are, of course, four radically different plans to follow: 
the alphabetical, numerical, geographical, and by sub- 
ject. And which is the best depends upon a business's 
filing demands. 

"For the average business of moderate size, the 
alphabetical is, in my opinion, the best system. For 
a concern with a wide and fairly uniform distribution 
through salesmen, agents, etc., the geographical is a 
good system. 

"If the volume of correspondence becomes too great 
to be adequately handled by either the alphabetical 

114 



POINTERS ON SYSTEM 

or tf f geographical method, one is forced to adopt the 
nun* wjal. The numerical is, properly speaking, not 
a dif 'tent method from the two mentioned. It merely 
consists of an index-card file, arranged either geo- 
graphically or alphabetically, which, in turn, refers 
to the actual file, which is arranged numerically. Each 
card in the index file is arbitrarily numbered to cor- 
respond with a file in the filing system. 

"Critics of this system object to the additional mo- 
tion involved. But, personally, I believe that it saves 
time* ind errors where a vast correspondence is con- 
ducted. 

"The fourth plan named, filing by subjects, applies 
to a purchasing department or some similar need. 

"No one except the filing-clerk should place matter 
in the files. Centralization of responsibility is abso- 
lutely necessary. She should be equipped with a sorter, 
a miniature file, in which the day's correspondence is 
segregated, and from this portable file she can dis- 
tribute the matter without taking unnecessary steps." 

" My Partner, the Tickler " 



tc 



Td like a dime for every foot-pound of human 
energy which is wasted daily in the effort to remember 
items which should have been committed to paper," 
said a successful executive. "Actually I believe that 
the incapacity for clear, straight thinking about which 
so many complaints are made is largely due to the dis- 
tracting strain to which many men subject their 
memories. 

9 . 115 



MODERN METHODS IN THE OFFICE 

"A note-book for your pocket and a tickler for your 
desk, these act as supplementary brains to the man 
who avails himself of them, and, used to their fullest 
extent, go far toward increasing efficiency. 

"More and more is the budget system for monetary 
expenditure being applied in business houses; the bud- 
get system for time expenditure is no less important. 
The tickler suggests this plan. 

"Sit down at your desk January first and plan 
your year. A dozen items will probably serve as 
guides. Enter them in your tickler. Then plan 
your month. Here you find the memory-burdening 
details beginning to crop up. Enter them also. 
Then plan your week. The convenient tickler takes 
care of the separate items and your mind is free 
to grapple with broad questions of policy instead of 
being hampered by the thousand and one petty de- 
tails which keep the unsystematic mind in a con- 
stantly distraught condition. 

"Furthermore, the budget system for time means 
that subjects will receive their shares of an executive's 
time in proportion to their importance. Too many 
executives devote a week to analyses of paint for the 
plant and a day to the investigation of new develop- 
ments in profit-sharing or bonus systems of payment. 
In case of accident or sudden illness, the tickler enables 
your lieutenants to cope with the problems which 
center upon your desk. 

"The tickler saves strain and brain fag, saves errors 
and omissions, saves time and tempers. Every execu- 
tive should have one as his understudy." 

116 



POINTERS ON SYSTEM 

Apply the Aquaphone Test to Your Organization 

An instrument called an aquaphone has been per- 
fected which is sufficiently sensitive to register the 
leaking of water, even though the leak be located many 
feet from the listener. It is used by water-company 
inspectors. Equipped with an aquaphone, they halt 
outside a residence at night and can tell whether or 
not the householder has left the water running in the 
kitchen to avoid danger of his pipes freezing. And 
when it comes to wasting the community's water, no 
man's house is his castle. The clairvoyant aquaphone 
brings the offender to the bar of justice. 

If a man could invent an aquaphone which would 
detect the manifold leaks which sap the vitality of 
every business, he could name his own price. Hundreds 
and even thousands of dollars are thrown into the 
waste-baskets of many large concerns annually. Lack- 
ing an aquaphone, the next best thing is a system 
which will prevent unnecessary waste. 

The auditor of one large concern concluded that the 
bills for office supplies were out of all reason. Without 
warning the office force, he began to investigate the 
contents of the waste-baskets. His findings were illu- 
minating. Scores of erasers which cost the company 
from two cents to ten cents were thrown away par- 
tially used. Pencils, originally seven inches in length, 
were discarded after being reduced to four or five 
inches. Clips, costing one dollar per thousand, were 
used by the office-boys for ammunition quite as liber- 
ally as though they were preparing for a Spring drive 

117 



MODERN METHODS IN THE OFFICE 

on the enemy's trenches. Expensive rubber bands 
provided the propelling force. 

Carbon paper, which costs from one and a half to 
two cents a sheet and which should yield ten or a dozen 
clear, sharp impressions, was flung away after going 
through the machine two or three times. All this was 
disclosed by an analysis of the waste-basket contents. 

Bulletins were immediately posted giving the results 
of the auditor's investigation. Department heads 
were called up on the carpet. A system of store- 
keeping was installed whereby no clerk could obtain 
erasers, pencils, or carbon paper without displaying the 
remnants of that he had last received. Metal pencil- 
holders were supplied which permitted the use of pen- 
cils down to the last two inches. 

The records of the first month of the new regime 
demonstrated that the annual saving in erasers 
amounted to $170; in pencils, $300; in carbon papers, 
$270; in clips, $75. 

Against this total of $815 was charged the few mo- 
ments a day which the clerk appointed as storekeeper 
devoted to this phase of his duties. This totaled but 
$50 a year; net saving, $765. 

Another large corporation learned that it was ex- 
pending nearly five hundred dollars merely for the 
envelopes used for inter-department communications. 
A very simple device cut this cost to seventy dollars. 
It was to use an envelope printed with six horizontal 
lines across its face. By drawing a line through the 
last superscription and addressing the envelope on 
the line beneath, each envelope was good for six trips. 

118 



POINTERS ON SYSTEM 

An Error-proof Receiving System 

" Carelessness in the receiving department costs 
many stores a great deal/' remarked the auditor of 
a large retail concern. "If the receiving - clerk is 
supplied with an itemized duplicate order covering 
an expected shipment, the chances are that now 
and then he'll check as received, items which never 
arrived. To assume that the other man is right 
when that assumption will save you trouble is 
human nature. There are people who never count 
their change. 

"The very simple plan which we use to avoid this 
danger is the system known as a blind tally. We supply 
the receiving department with a duplicate of the order 
lacking prices and quantities. 

"The clerk fills in the quantities from his records, 
and then in another department his entries are com- 
pared with the original order. 

"Another method which is merely a modification 
of that we use is to demand of the receiving department 
a complete, itemized record of all goods received. It 
seems to me, however, that our plan expedites matters 
without involving any of the risk attached to the usual 
system of supplying the receiving-clerk with full de- 
tails of expected arrivals." 

A Simple System Covering Shipments Returned for Credit 

"We've got to install some sort of system to take 
care of goods returned for credit," exclaimed the gen- 

119 



MODERN METHODS IN THE OFFICE 



eral manager of a large wholesale house, addressing 
the office manager. 

" Under our present plan of merely having the ship- 
ping-clerk pencil a memorandum of goods which arrive, 
shipments often are accepted which we've refused to 
receive and goods are sometimes credited twice to 
the same purchaser. I wish you'd evolve some plan," 
he concluded. 

" Here's what we need," said the office manager a 
day or two later, and he presented two blanks for in- 
spection. One read as follows: 



Date 

To the Receiving Dept. 

We expect goods returned for 
credit from 

M 






Credit Dep't 


As follows 











120 



POINTERS ON SYSTEM 

The other consisted merely of a credit memo, blank 
to be filled in and mailed to the customer. 

"Now then," continued the office manager, "when 
goods are expected, we'll deliver a slip covering them 
to the receiving department. Upon receipt of the 
goods, the shipper will make out a credit memo, in 
duplicate, enter the delivery upon his stock records, 
and 0. K. the duplicate. He will then send both orig- 
inal and duplicate to the bookkeeper, the original will 
be mailed to the customer, proper entry made on the 
ledger, and the duplicate filed. 

"In case of goods arriving for which the shipper has 
no notification slip from the credit department, the 
proper procedure will be to have him refer the truck- 
man to the credit department; the credit-man will 
then issue the notification slip to the truckman if the 
case so warrants, and the credit will then be handled 
as in the other instance. This plan sounds practicable 
to me. It ought to work." And it did. 

How Henry Brooks Gained a $10 Raise in Pay 

"Mr. Cordley," said Henry Brooks, whose function 

in the wholesale house by which he was employed was 

to check all orders transcribed by the typists to the 

printed house-order blanks, "I've been figuring out 

the time lost by our typists through the location of 

my desk. They make about twenty-five trips daily 

from the back of the office; multiply that by eight 

girls and you have two hundred trips, or a total of 

twenty thousand feet, or about three miles. Move 

121 



MODERN METHODS IN THE OFFICE 

my desk and 'phone back to the rear where a step or 
two will place the orders on my desk, and there's a 
saving of just so much lost motion." 

"A good idea," agreed the office manager, after a 
few moments' reflection. " 'Phone the telephone com- 
pany to send up a man to shift your instrument." 

It was two days later. As business slackened at 
about five o'clock, Henry appeared at Cordley's 
desk. 

"How does this suggestion impress you, Mr. Cord- 
ley? I have been noticing lately that the incoming 
mail includes a great many letters which contain ques- 
tions requiring the attention of several of our depart- 
ments." 

"Yes," admitted the office manager. 

"Under our present system, these letters are marked 
for each department, and upon receiving one the de- 
partment manager dictates a separate reply. This 
means that often five or six letters are written in reply 
to one communication. Now here's a plan that will 
obviate that extra time and expense. Why not have 
a slip printed to be attached to each incoming letter 
of this type? Leave a space on the slip for each de- 
partment to pencil a brief of its reply. Then concen- 
trate the answers into one department. This will 
mean that one man can write one letter covering every 
question raised. It will save time in dictation and in 
copying, also money in stamps and stationery." 

"It sounds like a good idea," admitted Cordley. 

"We'll try it and see if any defects develop. Frankly, 

122 



POINTERS ON SYSTEM 

I think of no objections at present. . . . We're glad to 
see you taking so much interest in the business, 
Brooks," he added. " That's the spirit that pushes a 
man up into higher-salaried jobs." 

The Case of Melton, the Man Who Lacked Originality 

"Yes, Judson is a good man," admitted the young 
proprietor of a jobbing-house, "and he had more 
original ideas than any man I've ever employed. But 
I'm letting him go. He has received an offer at a higher 
salary and I'm paying him all I can afford to. A man 
with genuinely original ideas is a tremendous asset 
to the community. But, measured in terms of value 
to his employer, I prefer an able adapter. A live, en- 
terprising adapter profits by the discoveries and in- 
novations of all the original minds in the count ly. 
The original man, as a rule, depends only upon his 
own necessarily limited achievements. 

"I once had the opportunity to study the methods 
of a man whom I shall always consider the ablest 
business man of my acquaintance; ablest in the sense 
of filling his niche more capably than any man I've 
ever seen. And he was utterly lacking in originality. 
An interesting type; we used to call him the human 
cash-register. I'll tell you about him. 

"At the time I knew Melton he was between thirty- 
five and forty years of age, married, and held the 
position of operating manager of a chain of five fairly 
sizable department stores. Two were the largest stores 

in cities of over a half-million population. Melton 

123 



MODERN METHODS IN THE OFFICE 

had worked his way up from a twelve-dollar-a-week 
behind-the-counter job. 

" Never have I seen a man more utterly concentrated 
upon one object — the complete mastery of his business. 
He never indulged in recreation of any sort; never un- 
bent; never allowed himself a hobby; every hour not 
spent in eating or sleeping was devoted to business. 
Personally he was the strangest individual I have ever 
met. He seemed to have none of the characteristics 
of a normal human being. He had not a friend in the 
world, nor an enemy. He was a mere machine for the 
acquisition and application of profitable information. 

"On trains, street-cars, and in his home Melton 
was always studying business or trade magazines, 
reading books dealing with various aspects of his 
business or volumes concerning the manufacture and 
marketing of the vast range of merchandise which he 
handled. It was not money that Melton was so in- 
terested in; it was a sort of fanatical ambition to 
become the greatest authority in the country upon the 
subject to which his time was devoted — the profitable 
operation of a department store. 

"As Melton read he clipped, and as he clipped he 
filed. Every few evenings he would then review his 
files with the idea of refreshing his memory. The 
result of all this was that shortly after the application 
of a new idea to department-store operation anywhere 
in the world, Melton heard of it and, if practicable, 
promptly installed the new method in his chain of 
stores. He subscribed to the service of two clipping 
bureaus and received many new ideas from this source. 

124 



POINTERS ON SYSTEM 

In a word, he cashed in on the combined originality 
of the human race. Isn't it obvious that this type of 
mind is more valuable to its employer than the original 
mind which evolves a good new idea perhaps once a 
month? 

"But listen to the sequel of Melton's story. Some 
years after leaving my position as advertising manager 
of one of the stores of the organization with which 
Melton was connected, I met, in a distant city, Conklin, 
the general manager of one of the chain of stores. 

"'How's Melton?' I inquired, 'the man you dubbed 
the human cash-register?' 

"'Melton?' he repeated. 'Do you know, that's the 
strangest case I've ever witnessed. He's developed 
a real human personality. A year or two after you 
left us Melton broke down. The doctor couldn't 
diagnose his case satisfactorily; said it was very 
baffling. The patient couldn't read a printed page and 
absorb its meaning; seemed to be a case of a mental 
and nervous collapse. The doctor, an acquaintance 
of mine, discussed the case with me frankly. I sug- 
gested that it might be a case of nature's revenge 
for the abnormality of Melton's mental attitude and 
manner of life. Said that it wasn't reasonable to sup- 
pose that any human being was here for the sole pur- 
pose of running a chain of department stores. His 
mind should embrace other interests — a harmless 
hobby, perhaps; occasional recreation; some develop- 
ment of the warm, human side of life. 

"'Well, the doctor talked to him along these lines. 
Melton himself did a whole lot of thinking during 

125 



MODERN METHODS IN THE OFFICE 

those months in the sick-room. The result was that 
when he finally tottered into the office again he seemed 
an entirely different individual. He may be less of 
a business man than previously, but certainly he's 
more of a man. 

" Outside business hours you see him at the theater, 
down at the club, out on the golf-links. And actually 
he has made a lot of friends. Yes, doubtless there's a 
limit to the extent we can concentrate upon one object. 
The case of Melton proves it." 

Scientific Management and Its Results 



ct 



Scientific management is really but one more step 
in the movement toward division of labor which began 
in the days of the cave-man," said an authority upon 
the subject. "By concentrating the thought and 
preliminary adjustments of a job in the planning de- 
partment, the worker is enabled to devote his entire 
attention to just one object, the fulfilment of the in- 
structions given him. The one best method of ac- 
complishing every task has been determined by previ- 
ous experiments. This knowledge is transmitted to 
the operator, with a consequent increase in his output 
and earnings. 

"The planning department performs every job in 
imagination before it enters the shop; the shop execu- 
tives see that its conceptions are executed in tangible 
materials. 

"The planning department conducts experiments de- 
signed to indicate the shortest time practicable re- 

126 



POINTERS ON SYSTEM 

quired to perform each operation, both hand and 
machine, and records its conclusions. 

" When an order is received, the planning department 
proceeds to analyze it thoroughly; visualizes every 
motion required to fill it; issues complete instructions 
regarding all operations involved; routes each part and 
follows up all work in process. These are but a few of 
its many functions. 

" Before the advent of scientific management, each 
individual operator was expected, in a great degree, 
to plan his own work. This resulted in lost motion 
and inefficiency. The advantage of concentrating 
this function in one department is obvious. It means 
more output with less labor ; more money for both men 
and management; more products for less money for 
the community." 

Standardizing 

"Not all products can be standardized/ ' said a 
business man, "but scores which are now manufac- 
tured in a multitude of sizes, styles, and models could 
be standardized to the benefit of all concerned. The 
present chaotic condition of many industries means an 
economic waste for which every one eventually pays. 

"As an instance of what can be accomplished by a 
little co-operative effort, take the case of the wagon 
manufacturers. Under the leadership of the secretary 
of their national organization, they got together a 
couple of years ago and proceeded to reduce the num- 
ber of sizes of wagon wheels from forty-one to five. 
This saved money for three parties: the manufacturer, 

127 



MODERN METHODS IN THE OFFICE 

the man from whom he bought his raw material, and 
the final purchaser. 

" Similar opportunities for effecting vast savings 
exist in many industries. But the competitive spirit 
is too strong to permit of the application of such ideas. " 

Packing Economies 



(c 



Four factors must be considered in packing goods 
for shipment," said a manufacturer: "cost of container, 
protection it affords, rate it commands, and time re- 
quired to pack with it. 

"At one time we used old barrels for shipping our 
product. They cost twelve cents. Then we tried 
sacks at ten cents. It did not pay us to have the 
barrels returned; the sacks were sent back to us. 

"As they were good for several trips, their cost 
finally figured down to three cents. This looked like 
an improvement, but upon figuring the additional 
time required to use the sacks, the barrels proved 
to be more profitable. We returned, therefore, to 
barrels. 

"Finally, an ingenious employee devised a rack for 
holding the sacks and by its use we could pack just 
as quickly as with barrels. So we returned to sacks 
and have used them ever since. 

Rules for Receiving-rooms 

Here are some pointers regarding incoming mer- 
chandise compiled by a big wholesale concern: 

128 



POINTERS ON SYSTEM 

Do not knock in the heads of barrels. Loosen the 
top hoops and pry out the head. 

Do not set a case off in a corner or put it with 
others where it may be forgotten. 
^ Do not try to check two shipments at the same 
time. 

Do not destroy cases until you are sure the ship- 
ment checks properly. 

Do not return goods until you have been so au- 
thorized by the shipper. 

If weights seem to be excessive, insist on having 
the goods weighed before you take them away from 
the station. 

Accept all goods that are consigned to you and pay 
the freight. This is the quickest way to obtain a 
satisfactory adjustment. 

Remember the railroads charge you for one hundred 
pounds, no matter how much less than that amount 
you have. 

When writing about an invoice, remember to state 
the date and the numbers appearing at the top of the 
invoice. 

Inter-departmental Mail Service Saves Labor 

"If every time one wrote a letter he summoned 
a postman to carry that single letter to its destina- 
tion, how many postmen would be required to handle 
the mail of the United States?" said an efficiency ex- 
pert of a great department store. "It's beyond com- 
putation," he continued. "Yet that was exactly the 

129 



MODERN METHODS IN THE OFFICE 

situation I discovered upon joining this organisation. 
Every time a message was despatched to another de- 
partment a boy was summoned to carry it. 

"The solution was so simple as to be amusing. 
I laid out a route to be covered hourly by two mail- 
carriers. They collect the mail from the baskets, 
assemble it at a central point, reroute it, and deliver 
it. Thus two messengers accomplish what formerly 
required the services of scores. Of course, some mes- 
sages have to be delivered quickly. These are handled 
by the messenger service. But ninety-five per cent, 
of the inter-departmental communications are not 
urgent. 

"'Why didn't we ever think of that before?' re- 
marked the management. Which was what the cour- 
tiers said when Columbus showed them how to make 
an egg stand on end." 

"An Efficiency Expert Is Merely a Piece of Cheese" 

"An efficiency engineer is like a Welsh rabbit — 
neither Welsh nor rabbit, just a piece of cheese," is 
a statement accredited to a prominent politician. 

Some years ago Harrington Emerson was employed 
to apply efficiency principles to a great manufacturing 
plant. He reduced production costs 25 per cent, and 
increased the men's earnings 10 per cent. The pro- 
prietors paid him one hundred and fifty thousand 
dollars, and figured that they'd made a mighty good 
investment. 

An efficiency expert was consulted by a great New 

130 



POINTERS ON SYSTEM 

York life-insurance company. He found a vast force 
of clerks at work copying "histories." Several thousand 
notices of changes in policies arrived in the mail daily. 
This necessitated the copying of a history of each such 
policy from the ledger which contained it. Each ledger 
held sixteen hundred histories. While a girl was using 
a ledger to copy one history, those remaining in that 
ledger were unavailable. 

The efficiency expert transferred the records from 
the vast tomes to cardboards which were opaque to the 
eye and transparent to the light. From that time on, 
to copy a history merely required the placing of the 
original cardboard in a blue-print machine and expos- 
ing the card to a mercury lamp. 

The output of the clerical force was tripled and an 
annual saving of twenty thousand dollars in wages was 
effected. 

These are but two of thousands of similar instances. 
European industrial plants have for some years past 
been availing themselves of the services of American 
efficiency experts. France, Germany, Italy, England, 
Austria, all these nations recognize their value. But 
to the politician quoted previously they are still but 
Welsh rabbits — neither Welsh nor rabbit, just pieces 
of cheese! 

Toward Efficiency 

"When I came in here," remarked the efficiency ex- 
pert who has achieved such amazing results in reducing 
the operating expense of a great department store, 

10 131 



MODERN METHODS IN THE OFFICE 

"my first step was to centralize the messenger ser- 
vice. Instead of having the boys located in squads 
about the store, I had them assembled at a central 
point under the direction of a despatcher who sits 
at a switchboard. Before him is a long board divided 
into numbered compartments, one for each boy. Sup- 
pose a call comes for a messenger. The despatcher sends 
one, at the same time filling out a slip which has 

blank spaces for Time Left Time Returned 

Dept. No Date Messenger's 

No , and placing it in the boy's pigeonhole. 

Upon the latter's return the time consumed is entered 
and the slip is placed in a numbered box corresponding 
to the compartment which is assigned him. The ac- 
cumulated slips at the day's end represent the day's 
activities. 

"At the end of each week, the time consumed per 
errand is averaged, and three prizes awarded the boys 
making the best showing. To-day our messenger force 
numbers over one hundred less than when I assailed 
the problem, and the service is improved. Several 
factors have contributed. They are: 

1. Decentralizing the sales-book system. 

2. Installing an inter-departmental mail system. 

3. Centralizing the messenger system. 

4. Ascertaining the individual efficiency of each boy 
and rewarding extra speed by prizes. 

"The daily pay-roll of over one hundred boys is an 
item of importance. A few weeks' study upon my 
part, coupled with efficiency experience, resulted in 
this saving." 

132 



POINTERS ON SYSTEM 
A $13,000-a-year Idea 

"It's seldom that I gain an idea from studying my 
competitors' methods," remarked a manager who is 
famed for the high standards of efficiency which pre- 
vail in his organization. "More often it is from adopt- 
ing an idea which is in successful operation in some 
entirely different line of business that I effect some 
noteworthy saving. For example: 

"Some months ago I read in your column an 
account of the really amazing results achieved by an 
efficiency expert in his analysis of a life-insurance 
company's problems. As I recall it, by substituting 
for the pages of huge books semi-transparent cards 
upon which the 'histories' of policy-holders were 
entered, he was enabled to secure clear, sharp blue- 
prints, thus avoiding the necessity for making count- 
less copies. This reform resulted in the release of 
many copying-clerks. 

"I am a manufacturer and I market my product 
through mail-order methods. One would hardly con- 
ceive that the methods of an insurance company would 
apply to my business. But reading that article made 
a deep impression on me. 

"'The real crux of that discovery is that duplica- 
tion beats copying,' I reflected. 'There must be some 
way of applying that to my enterprise.' 

"Finally I saw the way. Now, instead of copying 
orders by typing or carbon copies, we make one 'mas- 
ter copy' of name, address, date, order number, in- 
voice number, items, amount paid, C. 0. D., amount 

133 



MODERN METHODS IN THE OFFICE 

balance, way to ship, and follow-up data — four orders 
on each sheet. 

"Our boys then duplicate this complete information 
by machine twenty-five times on separate papers, 
thus making out invoice, day-book records, shipping 
label, signature coupon, follow-up address labels, vis- 
ible index-cards, collection index-card, and several 
mailing and C. O. D. envelopes. 

"This plan is now saving us just thirteen thousand 
dollars per year. And it is to be credited indirectly 
to the methods in vogue in that insurance company. 

"You never know just where you'll unearth an idea 
which will save you large sums. They crop up in the 
most unexpected places. This is because beneath every 
practical application of a plan lies a principle. And 
principles apply universally. " 

Too Much System 

"As a rule, there is, to-day, too much system in the 
big stores and too little in the small ones," said an 
efficiency expert who specializes on the retail field. 

"The big stores' systems are planned to insure ac- 
curacy, to supply information, and to prevent pecu- 
lation. It is on this last point that many stores are 
over-systematized. A well-nigh endless chain of sig- 
natures is required on many slips which deal either 
with the requisition of merchandise or the actual 
handling of cash. The idea is that, although one or 
two men may be crooked, the others are honest, and 
that, because their signatures are required, this factor 

134 



POINTERS ON SYSTEM 

acts as a preventive to any nefarious schemes the crooks 
may evolve. 

"All this is extremely expensive insurance. It im- 
pedes the operation of various departments, slows up 
the entire organization, and devours thousands of dol- 
lars' worth of time annually. 

"A better plan is to concentrate as much of this 
authority as is possible in the hands of one man who is 
known to be thoroughly dependable. Let his signature 
serve as a final O. K. and have documents of this 
nature delivered direct to him." 



This Executive's Plan for a Proper Distribution 
of His Time 



tc 



It was while talking to my fifteen-year-old boy, 
who is in his first year in the high school, that I received 
an idea which has saved me much time," said a busy 
executive. 

"He showed me his weekly-program card, which 
covered each of the six periods of each school day. 
In the little squares were entered the subject he studied 
at the hour designated, and the room in which he was 
located. 

"'Why shouldn't I use that idea?' I reflected, and 
I proceeded to prepare a similar card for my own use. 
Instead of dividing the day into six periods, however, 
I divided it into eight of an hour each. 

"When making appointments I consult my card and 
enter the name and place in the proper square. The 
chief advantage of this simple device is that I am en- 

135 



MODERN METHODS IN THE OFFICE 

abled to obtain a bird's-eye view of the entire week 
and distribute my appointments intelligently; not 
too many to a day. Previously certain days were so 
crowded with interviews that I had no time to attend 
to my mail and executive duties." 

" Graphs " and Their Usefulness 

"What in the world are those cabalistic insignia?" 
inquired Morse, the printer, indicating some mys- 
terious-looking charts which lay on the desk of Arnold, 
the advertising man for Black's department store. 

" Those are graphs," was the reply. " Merely a 
graphic presentation of the various activities of this 
department. For example: here's a chart which shows 
by months the number of inches of newspaper space 
we consume annually. The solid line curve means our 
store; the dotted line, Hollenbeck's; the dot and dash, 
Holt & Beebe's, and the red line, Halstead's. One of 
my assistants draws off the totals every month and 
transfers them to the chart. By consulting it I can 
see just how our competitors' expenditures compare 
with ours: in which months they expand their ap- 
propriations, and by consulting the chart for previous 
years can anticipate and prepare for their seasonal 
sales events. 

"Also I keep graphs covering the advertising ex- 
penditures of each of our own departments. The re- 
quirements of some departments involve the use of 
more space than do those of others; more in proportion 
to their gross volumes of business. Several departments 

136 



POINTERS ON SYSTEM 

properly concentrate the bulk of their annual expendi- 
tures into a four- or five-month period. Consulting 
the graphs of previous years helps me to apportion ap- 
propriations intelligently. " 

"A good idea," was Morse's reply, "and one that 
I shall apply to my own business." 

The use of graphs is constantly becoming more uni- 
versal. Factories find them valuable for tracing ten- 
dencies of various phases of the business. Scores of 
leaks are located by this method. Here are some items 
covered by the graphs of one plant. 

Selling price per ton. 

Mill cost plus overhead and selling expense. (Total 
cost.) 

Mill cost. 

Overhead expenses. 

Selling expense. 

Total production — tons. 

Total profits per week. 

Total profits per cent, of money invested. 

It enables the executives to visualize the course of 
every shifting factor. If a certain curve covering some 
expense item runs disproportionately high, the graph 
flashes a danger signal. The item demands a thorough 
probe. Often a change of management in some de- 
partment has resulted from a graph disclosure. Main- 
tenance of graphs for a large plant demands the time 
of but a few low-priced clerks. They are rapidly 
becoming recognized as indispensable. 



IV 

FOR THE ACCOUNTANT 
Saving Labor in Bookkeeping 



cc 



So you want to get into the advertising depart- 
ment," said Gleason, the general manager. "You 
say you don't think you'd ever develop into a book- 
keeper, and even if you could you wouldn't want to." 

"That's the idea," replied William Paxton, aged 
twenty-two. "I have a congenital prejudice against 
non-constructive labor. Same old grind, day after 
day. If I stayed with it thirty years I might become 
like fussy old Peckam, an anemic animalculus who 
years ago shriveled into the mere semblance of a 
human being." 

"God forbid!" exclaimed Gleason, with a laugh. 
"Well, stick along for a month or two. We'll have to 
get some one to take your place on the books. Then 
you can shift." 

Weeks passed and still Paxton saw no hope of succor. 

"I've got to start something around here," he reflected. 

"If I could only devise some short-cut method of 

handling this job, I could devote my spare time to the 

138 



FOR THE ACCOUNTANT 

advertising department and thus gradually work into 
a berth there." 

It was two weeks later. "Mr. Gleason," said Pax- 
ton, "if I could develop a method of doing my work 
on the books in two days a week, would you be willing 
to shift me into the advertising department for the 
balance of my time?" 

"Glad to do it," was the executive's response. 

"Here's my plan. It will save days of labor weekly. 
By analyzing our books I learned that we have about 
four hundred customers to whom we sell much of our 
product each week. Let us start a separate ledger for 
them, with dates for each week and the monthly bal- 
ance rulings already printed. Then let us enter only 
each week's invoice, with the totals at the month's 
end. This will save an incredible amount of excess 
labor. I've thrashed it out with Mr. Peckam and he 
vouches for the practicability of the scheme." 

"Go to it," replied Gleason, "and report to the 
advertising manager for the balance of your time." 

With the new plan in operation, Paxton found that a 
day a week sufficed for his bookkeeping labors. To-day 
he is assistant advertising manager, in direct line of 
succession to the advertising manager's throne. 

Tips for Your Traffic Department 



tt. 



Certain traffic experts earn a livelihood by inspect- 
ing their clients' freight records from time to time and 

139 



MODERN METHODS IN THE OFFICE 

accepting for their services a certain percentage of 
all they can obtain from the railroads for accidental 
over-charges/ ' remarked a business man. "This is 
good evidence of the fact that large sums are lost 
annually by concerns with loosely organized traffic 
departments. 

"My traffic department saves me a great deal directly 
in the shape of allowed claims for shortages in both 
outward and inward shipments, supervision of shipping 
thus insuring economical classifications, etc. But it 
is even more valuable in improving my delivery service 
to my customers. 

"The department's duties can be roughly divided 
as follows: supervision of (a) inward-bound freight; 
(b) outward-bound freight. 

"When the purchasing agent places an order, he 
promptly notifies the traffic department as to the 
probable time of delivery. 

"In case of delay in arrival, the traffic-man immedi- 
ately jogs the railroad's memory. Upon receipt of the 
notice of the goods' presence in the freight-sheds, an 
order is filled out authorizing the railroad to surrender 
the shipment to the bearer, the teamster. This order 
bears an itemized statement of the articles expected. 
Note that the original freight notice is not intrusted to the 
driver. It is kept in the office as evidence in case of 
need. Before the teamster leaves for the freight- 
house, he reports to the shipping department to pick 
up any outward-bound freight. Upon arrival of the 
goods in the receiving- room, they are checked with the 
expense bill by each department, and this is in turn 

140 



FOR THE ACCOUNTANT 

compared with the invoice, duplicate of the purchasing 
agent's order, and freight notice. 

"We pay our freight bills weekly — after we have 
checked the bills. On outward shipments, an itemized 
notice, covering weights, routing, classification, car 
number, etc., is made in triplicate. One copy goes 
to the railroad, another to the customer, and the third 
remains in our files. In case of claim of shortage by 
the purchaser, our itemized receipt from the railroad 
eliminates all danger of controversy. This receipt is 
never surrendered for tracing purposes. A copy is 
provided, should need arise. 

"A traffic department is non-productive. But be- 
cause an efficient one saves lawsuits, money, and ex- 
pedites shipments, it is a good investment for a con- 
cern large enough to support one." 

Efficiency in Filling and Billing Orders 



tt 



Here is our method/' said the manager of a large 
wholesale grocery-house. "Suppose an order arrives 
from either a salesman or a customer. First, each item 
is marked with the number of the department from 
which it will be filled. This clerk also makes a list of 
the names of the house salesmen who will fill the order. 

"The order accompanied by the list is then typed 
upon a house order form, enough carbons being made 
to cover each department involved. 

"On each of these forms appear name and address of 
customer, date, and the name of salesman to whom 
order is credited. These are then distributed to the 

141 



MODERN METHODS IN THE OFFICE 

proper departments, the original order going to the 
assembling-room, where it is hung over a collection-bin. 

"As the goods arrive from each department they 
are accompanied by the carbon copy of the order, 
the latter being placed with the original order. Right 
there on the spot, the items are called to a bill-clerk, 
who types the bill and its carbon, including prices. 
Another clerk then checks this operation, comparing 
the merchandise with the bill. Note that the billing- 
clerk works directly from the goods, not from the 
order. 

"The bill with its carbon then passes to the office 
for extension, where they are extended and footed by 
calculating-machines. One operator works from the 
original, another from the carbon. The two results 
obtained independently must agree. 

"Following this, the original is mailed to the cus- 
tomer, the duplicate being filed. 

"In former years we had the extensions and totals 
figured mentally. But we find that machines are a 
good investment. They save wear and tear on the 
clerks, are more accurate, and one operator with a 
machine will do the work of three clerks figuring 
mentally." 

A Penny Saved Is a Penny Earned 

"Ignorance of cost is conducive to extravagance/' 
said a cashier whose hobby of keeping down expenses 
is worth thousands a year to his employers. 

"Consequently I am constantly reminding our force 

142 



FOR THE ACCOUNTANT 

of the exact cost of each individual article they con- 
sume. 

"When I make up a package of engraved business 
cards for any of our salesmen, I affix to it a typed slip 
stating that each card cost just one cent. The adoption 
of this policy resulted in an annual saving of over one 
hundred dollars. 

"I notified our typists that each sheet of plain paper 
cost just one-fifth of a cent. This cut our stationery 
bills several hundred dollars a year. 

"I figured out the cost per ten-minute period of 
power for each electric light in our plant. By posting 
signs about containing this datum, our bills were re- 
duced substantially. 

" Rubber bands, pens, pencils, erasers — all these 
items I've figured individually; and our staff is thor- 
oughly posted on the cost of each pen, pencil, etc. 
Equipped with this datum, they instinctively avoid 
waste. It's human nature. Translate merchandise 
into money, and the desired result is achieved. They 
don't require urging. The previous waste of supplies 
is eliminated. The total annual saving amounts to a 
goodly sum." 

" Mark a Definite Due Date on Your Bills — It Means 
Quicker Collections," says this Man 

"If I loaned you twenty dollars and told you the 
date that I expected it to be repaid," said a whole- 
saler, "which would make the deeper impression — for 
me to say that I wanted the money repaid within 

143 



MODERN METHODS IN THE OFFICE 

sixty days, or that I expected you to repay it January 
fifteenth?" 

"The latter statement/' was the response. 

"Exactly. And that's just the way it's worked out 
in my business. In common with most men, I always 
sold my product on thirty- or sixty-day terms, as 
the case might be. Like every one else, I have trouble 
at times with collections. 

"One day it occurred to me that if each bill bore the 
exact date that payment was due, and that it was 
plainly understood at the time of the sale that I ex- 
pected the money on that date, I'd have less trouble 
with chronic interest-grabbers. 

"I immediately adopted the new method of fea- 
turing on each bill the date that payment was due. 
The results were gratifying in the extreme. Collections 
promptly picked up. Possibly, if every one followed 
these tactics, the effect would gradually wear off. 
But in my case the device has proved to be of per- 
manent value. I figure that because of it I get the 
preference when checks are being drawn. Thirty and 
sixty days seem rather indefinite periods. January 
fifteenth looms sharp and clear cut. It makes a dent 
in the purchaser's consciousness and memory." 

A Daily Trial Balance Saves Worry and Labor 

"Time and again I've had trouble in obtaining my 
monthly trial balance," said a bookkeeper. "Upon 
one occasion I had to work four hours overtime for 
three nights in order to locate a slight error. 

144 



FOR THE ACCOUNTANT 

"Finally I developed a simple method of avoiding 
this danger. Now I take a daily trial balance. As 
I make entries on my ledger, I insert a marker at the 
item involved, the end of the marker projecting from 
the edge of the book. 

"After completing my posting, I then go through 
the day's items, totaling the debits and credits. The 
amounts when added should, of course, equal the 
difference between the footings at the opening and 
closing of the day covered. If an error appears it is 
a simple matter to nail it on the spot. But by my 
former method, the error might have occurred any- 
where during the month's business, which meant a 
laborious rechecking of past entries." 

New Ideas in Cost-keeping 

"The installation of a cost-keeping system will not 
directly accomplish anything in the way of increasing 
your profits,'' said a cost accountant. "It will not 
increase production or decrease costs. But it will give 
you information in such form that, intelligently utilized, 
you can take steps which will increase your profits. 
In a factory, for example, it will inform you as to the 
time expenditure upon each operation or each order; 
it will give you the cost of each unit of your product; 
it will tell just where and in just what stage of develop- 
ment each unfinished unit is; it will tell what propor- 
tion of overhead should be charged to each department's 
product, figured both by the hour and by the unit; 
it will do the same in connection with direct labor cost. 

145 



MODERN METHODS IN THE OFFICE 

It will post you accurately on the proportions of non- 
productive to productive labor and inform you as to 
what the former is devoted; it will do the same for 
materials; it will give you the hourly operating cost 
on each class of machines and on the various depart- 
ments. It will show whether each operation is in- 
creasing or decreasing in cost, and whether you are 
making goods at a profit or at a loss; and if you are 
making some at a profit and others at a loss, it will 
separate the sheep from the wolves. 

"In the past it has been the habit of cost experts to 
charge the product with the entire expense. This has 
resulted in fallacious conclusions. For one reason or 
another many plants are, at certain times, partially 
idle. But rent, insurance, taxes, and depreciation keep 
right on. Now the total of these expenses charged 
against the product may very well seem to indicate 
that its manufacture is unprofitable. As a matter of 
fact, it may be highly profitable when the product is 
debited with only its actual and legitimate costs. 

"This method of cost-keeping results in condemning 
a product as unprofitable when the real fault lies in the 
management. Often the addition of other lines to 
utilize idle machinery or space will result in placing 
the business on a profitable basis. 

"I know of one concern, now employing a factory 
force of twenty-three hundred, whose business was 
originally highly seasonal. Its product was bought by 
the consumer principally at Christmas and New- 
Year's. This meant that a large factory was uti- 
lized to its fullest capacity only during the summer and 

146 



FOR THE ACCOUNTANT 

autumn. The necessity for timeliness in the models 
and lines handled rendered it unsafe to manufacture 
over six months in advance of the demand. The 
product had to bear the heavy expense of insurance, 
taxes, interest on the investment, etc., during the 
first six months of the year, when the output was small. 
Certain staple lines were then added which resulted in 
keeping the plant filled with business the year round, 
and promptly the records showed the real profit on 
the original lines; far in excess, needless to say, of 
that previously figured." 

A Series of Collection Letters 

"My idea of the proper note to strike in a series of 
collection letters is absolute firmness without a trace 
of bullying," said a credit-man. "If the debtor is 
shifty and inclined to be a beat, a firm attitude con- 
vinces him that he must pay or face the consequences; 
and if he is an honest man, pressed for money, the 
absence of a bullying tone will tend to hold him as a 
future customer and make him resolve to square up 
as soon as possible. Waving the big stick, on the 
other hand, arouses resentment and often delays 
payments. 

"It is well to start with the polite assumption that 
the item has been overlooked; then gradually to in- 
crease the pressure. Here is a series which I have found 
effectual. The first letter reads: 

We note that our account against you of $32.60 has escaped 
your attention. As our terms were clearly explained to you at 
11 147 



MODERN METHODS IN THE OFFICE 

the time this account was opened and the time limit then agreed 
upon has now expired, we would greatly appreciate it if you would 
promptly mail us a check for the amount due. 
« 
"This letter always brings a considerable number 

into the fold, the reason being that it reaches many 
customers who are merely careless and who are only 
too glad to be reminded of their delinquency. Failing 
of the desired effect, a second letter reading as follows 
is despatched: 

On the 8th we wrote you about your overdue account of $32.60, 
which was, even at that time, past due. It was with the explicit 
understanding that j^our account would be settled monthly that we 
extended you credit. We have received no reply to our last letter 
and we must now insist that payment in full be made promptly. 

"Many perfectly good risks fail to respond even 
to this second letter, so that we do not consider it 
wise to resort to threat of suit in the third letter, 
which is phrased thus: 

You have received two letters from us asking for payment for 
your account of $32.60, but you have failed to reply. Our rule 
regarding monthly settlements, which was explained to you at 
the time the account was opened, is inflexible. 

We feel that, under the circumstances, we can no longer extend 
you credit, and, therefore, must notify you that until you meet 
this obligation you must pay cash for any purchases. If, however, 
you will promptly remit, we shall we glad to offer you your former 
credit privileges. 

"In the above letter a real reason is advanced as to 
why it is to the debtor's interest to pay. This letter 
always brings a better response than letter Number two. 

148 



FOR THE ACCOUNTANT 

"A collector then calls upon the man, unless he is 
located at a point too remote to render this practicable, 
and, failing of action, a final letter threatening suit 
is mailed. This epistle is worded as follows: 

You have received three letters from us regarding your overdue 
account of $32.60. Also our collector has called upon you, with 
no result. We are forced to the conclusion that you are trying 
to evade payment and must, therefore, serve notice upon you 
that unless payment in full, or at least part payment, is made be- 
fore the 5th, we shall immediately place the claim in our attorney's 
hands without further notice. 

"This is our final effort, and unless the debtor pays 
he finds himself involved in litigation with all its un- 
pleasant corollaries. " 

What a Traffic-man Discovered 

"The worst feature connected with loss occasioned 
by ignorance of freight rates and classifications is the 
fact that it is almost always a steady drain on the busi- 
ness, extending sometimes over a period of many years/ ' 
said a traffic-man. 

"Take this concern, for example. When I joined them 
I found that ever since they had been in business they 
had been shipping their product, coffee, as 'Bags 
roasted coffee/ under a third-class rate. 

"The bags were of burlap, lined with waterproof 
paper, and when so designated the shipment com- 
manded a fourth-class rating. 

"I wonder how many thousands of dollars are lost 

149 



MODERN METHODS IN THE OFFICE 

daily through similar lack of expert knowledge of 
traffic rates and classifications?" 



Trade Acceptances — a Forward Step 

"What are trade acceptances?" said a credit-man in 
response to the interviewer's question. "Merely a 
written promise to pay upon a certain specified date 
for goods received. Their general adoption by the 
business men of this country means a decided forward 
step in our methods of conducting commercial trans- 
actions. To be more specific, they will, according to 
the Cleveland Association of Credit-men, result in the 
following advantages: 

1. They are more liquid than book accounts. 

2. Their use will make it impossible for the purchaser 
of goods, after acceptance of a draft, to take an un- 
authorized and unearned discount. 

3. With the buyer's obligation in the form of an 
acceptance, circulating perhaps in several markets, he 
could not well return goods, which is done sometimes 
under the open account before it is due. 

4. Trade acceptances would seek the market where 
the lowest rates prevail, thus placing the small buyer's 
paper on an equal footing with that of the large 
buyer. 

5. It would put an end to the bad business practice 
of assigning open accounts. 

6. It would make the purchaser of merchandise more 
careful in his buying. 

150 



FOR THE ACCOUNTANT 

7. It would accord with the desire of the Federal 
Reserve Board and conform to the spirit of the Federal 
Reserve Act. 

8. It would place the transaction covered by an ac- 
ceptance on a sound business basis for the buyer, the 
seller, and the banker. 

9. The tendency would be for obligations to be met 
promptly. 

10. The credit facilities of many firms would be 
greater than under our present system. 

11. Under this system foreign countries have built 
up sound financial structures, one of the effects of 
which has been to strengthen their prestige in the mar- 
kets of the world. We should do the same. 

12. In time of stringency banks will discriminate in 
favor of self-liquidating trade acceptances as against 
paper not eligible for rediscount, and possibly against 
single-name paper. 

"Naturally, trade acceptances can be discounted at 
a much lower rate than ordinary open accounts. As 
two-name paper, it is doubly protected. Furthermore, 
banks can loan freely upon this security without vio- 
lating the law. They can loan but ten per cent, of 
their capital and surplus to any one firm on single- 
name paper. 

"This ruling does not apply to two-name paper. 

"The method of obtaining a trade acceptance is 
simplicity itself. It means merely that with the 
invoice the seller forwards a blank reading as 
follows: 

151 



MODERN METHODS IN THE OFFICE 



No. 



Detroit, Mich 19. . . 

After date pay to 

, or order 

Dollars $ 

(To be filled in by Acceptor) 



At 



The obligation of the acceptor of this bill arises out of the purchase of goods from 
the drawer. 



(Drawee) 



(Drawer) 



"Across the face of the draft the customer or ac- 
ceptor stamps or writes as follows: 



Oi 



■8 

<v 
o 

< 



<x> 



M 

O 

a, 

<x> 
o 
o 

< 



"In a word, trade acceptances make for precision in 
business transactions; save money for the seller, and 
hence indirectly, in prices quoted, for the buyer, tend 
to minimize danger of disputes and litigation; loosen 
up credit, which means that a dollar will earn more 
money for more people and, in general, increase the 
efficiency of their users." 

152 



FOR THE ACCOUNTANT 

A Short Cut in Accounting 

"A certain amount of red tape is necessary to in- 
sure accuracy in accounting, " said a bookkeeper, re- 
cently, "but it should be reduced to a minimum. 

"Here is a method which reduces labor on the in- 
numerable petty-purchase accounts which accumulate 
monthly, many of which represent dealings with con- 
cerns who may never require another entry. 

"First, open an account in the ledger entitled Petty 
Purchase Account. When an invoice comes through 
which is too small or infrequent in character to war- 
rant the opening of an account in the ledger, enter it 
in the regular purchase journal, but in a column dis- 
tinct from that containing items to be posted to the 
ledger. Stamp or mark the invoice in some way to 
distinguish it from the usual type. 

"When payment is due, write name of recipient of 
check in check-register and designate this item by 
the initials P. P. Keep these items segregated as they 
pass from the check-register to the general cash-book, 
just as in the case of the purchase journal. This will 
prevent their passage to the ledger in the course of 
the regular routine. 

"At the month's wind-up, total the P. P. column in 
the purchase journal and post it on the credit side of 
the petty-purchase account. Total the same column 
in the general cash-book and transfer to the debit 
side of the same account. 

"This plan preserves all the essential data in easily 

accessible form and results in the elimination of the 

153 



MODERN METHODS IN THE OFFICE 

considerable labor involved in handling a large num- 
ber of insignificant entries." 

Card Ledgers — Time- and Labor-savers 



(i 



I'll have to ask you to wait a few minutes, Mr. 
Condon/' said Miller, assistant bookkeeper of the 
Stewart Company. "The ledger containing your ac- 
count is in use. Mr. Claflin, another customer, asked 
to have his account made up only a few minutes ago." 

"I can't wait," was the impatient response. "You 
can mail it to-night," and Condon was gone. 

"That's the second time that's occurred this week," 
reflected Miller. ' 1 1 wonder if there isn't some method of 
avoiding the difficulty? I'll have to do a little reading on 
the sub j ect in my spare moments. Perhaps a practicable 
suggestion will get the raise I've been looking for." 

"Mr. Reed, if I could install a system here that would 
save twenty-five per cent, of the labor involved in our 
accounting department, would it interest you?" Miller 
was addressing the general manager some days later. 
"Of course it would. What's your idea?" 
"Merely to substitute a card system," was the 
reply. "I've been investigating the subject and find 
that there's no comparison between the two methods. 
We have about seven thousand accounts kept in 
seventeen ledgers. Fifteen drawers will accommodate 
a card system. We can arrange them either alpha- 
betically or geographically, though I'd recommend the 
latter plan. This will help the sales manager in ana- 

154 



FOR THE ACCOUNTANT 

lyzing returns and conditions in certain districts. Here 
are a few of the advantages: 

"At present we clerks are often hampered in our 
work by the head bookkeeper's needing the ledger 
upon which we're at work. A card system obviates 
that difficulty. Furthermore, with cards our system 
would be much more flexible; no dead material would 
accumulate, as it does in our books. In case of a hurry- 
up job on certain accounts, the work could be split 
up among several clerks if we used cards. With books 
this is impossible." And for some minutes Miller con- 
tinued to demonstrate the advantages of the new plan. 

"Miller, it's worth a trial," said Reed, finally. "And 
I'll assign you the task of working out all the details 
and superintending the transfer. Make a thorough 
study of all the systems in use and select the one best 
adapted to our purpose." 

Within two weeks the new plan was in operation and 
so much time was saved that several of the clerks 
were taken from the department and shifted to the 
warehouse, where a demand for clerical labor existed. 
The net saving in salaries amounted to a substantial 
weekly sum. And the following Saturday Miller found 
that his envelope contained twenty-five dollars in- 
stead of the usual fifteen. 

"That's all right, Miller," replied Reed, as the 
young clerk thanked him. "You've saved the house 
a good deal more than ten dollars a week. Keep your 
eyes open for further improvements. You'll find that 
we appreciate your interest.' 



155 



V 

TOWARD EFFICIENCY 

A Chairless Office Conserves this Man's Time 

"A very simple plan has enabled me to save an aver- 
age of a half-hour a day," said the advertising manager 
of a department store. 

" Because of the nature of my work I have to grant 
interviews to a good many advertising solicitors. This 
consumes much time. 

"Now, in my opinion, five minutes is ample time 
in which to state a proposition. But the average sales- 
man or solicitor will sink into a chair and plan on 
talking for a half-hoar. I used to keep a chair beside 
my desk for the use of callers. One day, after an elo- 
quent solicitor had consumed nearly an hour of my 
time, I concluded that I would adopt radical measures. 

"I excluded all but two chairs from my office. I 
now have one for myself and one for my stenographer. 
When a caller enters I arise and tactfully steer him 
over to the tall bookkeepers desk upon which I lay 
out my dummies. We lean on that support and I 
listen to his story. 

"I find that, lacking a chair, the solicitors are con- 

156 



TOWARD EFFICIENCY 

tent to state their errand and leave. The mere fact 
that they are standing rather than sitting seems to 
suggest a short interview. 

"Chairs are responsible for a great deal of wasted 
time. My estimate that their abolition in my office 
saves me a half-hour daily is conservative." 

" Don't Lock Up Your Desk," is a Rule of this Office 

"We have one rule here which we expect to be in- 
flexibly observed/' remarked the office manager to 
the new telephone-order clerk, "and it applies from 
the president down. 

"In your desk is one drawer for personal effects. 
Never put any documents relating to our business into 
it. Keep it locked, if you prefer, but never lock the 
other drawers. Before this rule was enacted, much 
trouble arose from absences due to illness. Often 
drawers containing matter requiring immediate at- 
tention would be found locked up. The key was at 
the employee's home. It meant bother and expense 
due to the necessity of breaking open the desk. Hence 
the need of leaving your desk unlocked when you leave 
in the evening." 

Saving Time in Figuring Postage on Parcel Post 

The following table, published in Office Efficiency, a 

house organ of The Art Metal Construction Company, 

of Jamestown, New York, should save time in the 

mailing department: 

157 



MODERN METHODS IN THE OFFICE 

In this table you use as a basis the number of pounds in each case. 
To find postage on a package to 1st or 2d zone simply add to 
the number of pounds 4 cents. 
3d zone, multiply number of pounds by 2 and add 4 cents. 
4th zone, multiply by 4 and add 3 cents. 
5th, multiply by 6 and add 2 cents. 
6th, multiply by 8 and add 1 cent. 
7th, multiply by 10 and add 1 cent. 
Sth, multiply by 12. 



Reducing Freight Charges 

"If I had the money which is wasted annually in 
this country through excess freight charges arising 
from ignorance and carelessness in packing, I'd retire 
on my income/' said a manufacturer, recently. 

"Goods which could well be shipped in boxes or 
barrels are packed in crates, which pushes them into 
a higher classification; products which could go in 
crates often are shipped in sacks, with the same result. 

"I knew one heavy shipper who used to use any- 
thing which was convenient for a container. One day 
he forwarded a shipment of the same material packed 
by three different methods — sacks, boxes, and barrels. 
Happening to study his freight bill closely, he learned 
that he had been charged first-class rates for his boxes, 
third-class for his sacks, and fifth-class for his barrels. 
This opened his eyes; he proceeded to make a study 
of his shipping problem, with the result that the product 
of his plant is now shipped in the one best and cheapest 
form. 

"As a general rule, the more substantial the con- 

158 



TOWARD EFFICIENCY 

tainer, the lower or less expensive the classification. 
This is to penalize the man whose methods of packing 
are likely to result in damages against the railroad. 
But it does not always apply. So weird are some of the 
rulings that, in shipping a desk across the country, I 
discovered that to put several pounds of cobblestones in 
the drawers brought the shipment into a weight classi- 
fication which saved several dollars in freight charges. 
'Very slight modifications in the style of packing 
often effect substantial savings. Wooden tops on bar- 
rels instead of cloth tops shift most commodities at 
least one class. On some non-perishable products 
shipped in barrels the absence of a top does not carry 
a penalty. Goods shipped knocked down invariably 
command a lower rate than those set up. 

"For years a certain manufacturer of shafting shipped 
his product with couplers, pulleys, and hangers at- 
tached. It was charged at first-class rates. A new 
shipper reduced his classification to fourth-class merely 
by shipping these goods non-assembled. 

'The rulings issued by the railroads are admittedly 
intricate and difficult to grasp. But a patient study 
of them brings its reward in the shape of worth-while 
savings. And I don't know of any easier method of 
saving money than to reduce your shipping charges 
by ascertaining the one best and cheapest method of 
packing." 

The Tendency of the Times 

"It is a question whether the American public has 
yet fully realized the extent of the vast economic 

159 



MODERN METHODS IN THE OFFICE 

changes which have been effected in our national life 
during the past generation/ ' remarked a prominent 
business man, recently. "The scale upon which busi- 
ness is done has so increased that a business man of 
the old school could not hope to cope with modern 
conditions. 

"For one thing, in the lines of business which have 
been concentrated into great units, and which are 
owned by thousands of stockholders, personal contact 
between employer and employee has disappeared. The 
entire responsibility for a great corporation's adminis- 
tration devolves upon the body of men known as the 
management. The vast majority of the stockholders 
have utterly no knowledge as to the conduct of the 
business. They invest their money, draw their divi- 
dends, if fortunate, and let it go at that. No one knows 
as to just what extent an industry can be expanded 
to attain the maximum of efficiency. If split up into 
small competing units, the vast waste attendant upon 
duplication of plants, sales organizations, and similar 
necessary factors renders them uneconomical from the 
viewpoint of the community. If, on the other hand, 
a business, through crushing or purchasing competi- 
tors, becomes too large, it becomes unwieldy and hence 
is wastefully administered. There is no question but 
that the Morgan interests, for instance, had at the time 
of J. P. Morgan's death become too large for efficient 
administration. The Roman Empire, to go back some 
distance, was another instance of an enterprise which 
became too large to longer function. 

"With the expansion of modern business has come 

160 



TOWARD EFFICIENCY 

specialization as a natural corollary. The small busi- 
ness cannot afford to keep many specialists upon its 
pay-roll; the large one finds it a good investment. 

"In looking over a prospectus issued by a commercial 
correspondence school, recently, I was interested to 
note the plan of subdivision followed in analyzing 
modern business. It ran somewhat as follows: 



1. Production 



a. Organization. 

b. Management. 



2. Marketing 



a. Salesmanship. 

b. Advertising. 

c. Correspondence. 

d. Credits. 

e. Traffic. 



4. Finance 



a. Banking Principles 

and Practice. 

b. Foreign Exchange. 

c. Investment and 

Speculation. 

d. Insurance. 

e. Real Estate. 



5. Commercial Law 



3. Accounting 

a. Auditing. 

b. Cost Finding. 

"The extent to which specialization has been carried 
in these various departments of business is amazing. 
And the end is not yet. Take the single item of ad- 
vertising, for example. Twenty-five years ago the 
advertising-man was merely a space broker — a sort of 
retailer of space which he purchased at wholesale. 
To-day he must combine within his organization a 
complete knowledge of the various channels of distri- 

161 



MODERN METHODS IN THE OFFICE 

bution, a grasp of copy and layout, an understanding 
of sales management, a knowledge of media and their 
rates, of trade-marks and trade-mark law — in short, 
the ability to plan and execute a campaign complete 
in every detail for the successful marketing of any 
product which may be presented for his opinion. Nat- 
urally, it has been found profitable to specialize. 
One man, located in New York, is recognized as an 
authority upon media and their circulations. Other 
members of the profession consult him on this feature 
of a projected campaign. Other advertising-men are 
mail-order specialists. Others concentrate upon sales 
letters and mailing campaigns. Still others are tech- 
nical advertisers and handle only machinery and other 
products designed for use in manufacturing plants. 
An entirely separate branch of the profession is that 
of department-store advertising. 

" Similarly, among wage-earners you find the same 
tendency. Factory workers now perform but a single 
operation in the manufacture of the plant's product. 

"All this, I suppose, makes for community efficiency. 
But does it make for individual human efficiency? In 
the long run, won't we pay a price for this generation's 
amazing productive power? Doesn't the mental vi- 
tality of the people as a whole suffer from this narrow- 
ing specialization? Doesn't it stifle initiative, resource- 
fulness, and tend to discourage versatility? Well, it's 
a great age. We're plunging ahead at a terrific speed 
toward some unseen goal. There have been more 
fundamental and far-reaching changes in my life- 
time than in the ten generations that preceded it. 

162 



TOWARD EFFICIENCY 

I'd like just a squint at the world in nineteen seventy- 
five." 

The Value of Business Reading 

"In hiring men for positions of responsibility/' said 
an executive of a large corporation, "one of the points 
upon which I demand information is the extent of 
the applicant's reading along business lines. The re- 
sponse goes far in assigning the man a rating in my 
estimation. Lack of time is a reason often proffered 
to excuse ignorance of the contemporaneous literature 
of one's chosen field of endeavor. A man should 
make time to read in this direction. Clip a few minutes 
daily from your perusal of the sporting page and devote 
this period to solid business reading, and the result 
will soon show in your pay-envelope." 

"A year or two ago I met a man who, at that time, 
ranked as the best salesman in his organization. He 
represented a publishing-concern which operates two 
well-known magazines and which also issues many 
books. Among its hundreds of salesmen, covering 
every state in the Union, remember, this man, by the 
actual evidence of tangible results, stood first. 

"'How do you explain your success?' I inquired. 
'Are you a natural salesman?' 

"'Do I look like one?' he asked, with a laugh. 
'Wouldn't you pick me out of a crowd as a book- 
keeper, drug-clerk, or representative of some equally 
inactive vocation?' 

"'Yes, I would/ I admitted. As a matter of fact, 

12 163 



MODERN METHODS IN THE OFFICE 

he was a lean, bespectacled, academic-looking indi- 
vidual, without a spark of that magnetism and super- 
abundant vitality which is supposed to accompany 
phenomenal sales talent. 

"'No, I'm not a natural salesman/ he continued. 
'I'll tell you about my experience. 

'" About eight years ago I concluded to emerge from 
behind the counter and to take a whirl at selling. I 
started out from St. Louis with a line of merchandise. 
I hadn't been out over two weeks when it was borne 
in on me that I couldn't sell silver dollars for nickels. 
A more pathetic imitation of a salesman never un- 
packed a grip. 

"'One evening, in the lobby of a hotel in a little 
Kansas town, I ran into an old school friend. It 
developed that he was a real salesman. He asked me 
how things were going and I told the truth — that I 
was a flat failure and was about to take the morning 
train to St. Louis and start rustling another behind- 
the-counter job. 

"'My friend suggested that I stick it out a week 
longer, and said that, ridiculous as it might sound, 
he had learned to sell goods from a book. He pro- 
duced it from his grip and presented it to me. It 
dealt with the theory and practice of salesmanship 
and gave many actual examples of right and wrong 
methods. 

"'That night I sat up till the small hours perusing 
the volume. I began to pluck up courage; I saw that 
my attack had been of the hit-or-miss type, poorly 
planned. Next day I started out with renewed nerve 

164 



TOWARD EFFICIENCY 

and actually closed a sale which showed me over 
thirty dollars' commission. That evening I once more 
read the book. The following day I moved on to an- 
other town and once more I made a good sale. 

"'That was the beginning of my career as a sales- 
man. It's by applying the principles that I gained 
from a few hours' reading that I've attained the posi- 
tion I now occupy.' 

" That's just one case of the value of a little reading 
along business lines," continued the executive. 

"The other day I was talking to the sales manager 
of a corporation which has netted forty thousand dol- 
lars in the past two years from applying an idea sug- 
gested by the sales manager. He got the conception 
from an article in a business magazine. 

"The point is right here. In the course of, say, a 
year's actual experience, you soak in a certain amount 
of information. But your information is limited to 
your own experience. By a systematic course of read- 
ing, however, you profit by the experience of scores of 
business men. In other words, you can gain a vast 
fund of experience vicariously. It's the one sure and 
certain get-rich-quick scheme. For in the bitter com- 
petitive struggle for existence, certainly the man 
equipped with the greater fund of knowledge has an 
advantage over his less- well-informed adversaries. By 
reading one gets wise quick, hence it logically follows 
that he stands a better opportunity to get rich quick. 
What is a salaried man paid for? Knowledge, prin- 
cipally. Increase your knowledge and you increase 

165 



MODERN METHODS IN THE OFFICE 

the contents of your pay-envelope; that's simple, 
isn't it? 

"Not long ago the expansion of our business forced 
us to erect a new building. We engaged a competent 
architect; got in touch with an insurance expert and 
a combustion engineer and thought that we were all 
primed to go ahead. At this juncture a new man in 
our organization requested a hearing. 

"'Gentlemen, you've got the wrong idea/ he in- 
formed us. 'The latest method of erecting an indus- 
trial structure demands the consultation of efficiency 
experts. You people are going ahead hit-or-miss. 
After you've built a rectangular structure, you'll then 
proceed to arrange your departments as economically 
as possible within the limits of that constant factor, 
the building. 

"'The proper method is to plan the relation of the 
departments first; then to erect a building which will 
contain them. Get in touch with the Blank organiza- 
tion. They operate by constructing miniature models. 
When they've completed an analysis of your problem, 
you can then call in your architect, combustion en- 
gineer, insurance man, etc' 

"We followed this man's instructions, with the result 
that our new building will not in any degree resemble 
our original plan. And to say that a saving of seventy- 
five thousand dollars annually will be effected is no 
overstatement. 

"It was from an article in a business magazine that 
the man who saved us this sum derived his informa- 
tion." 

166 



TOWARD EFFICIENCY 

" Don't Carry Your Coals to Newcastle," says this 
Successful Young Executive 

" Ability is purely relative," said the successful 
young sales manager of a staid old New York whole- 
sale house. "And it's to my realization of that fact 
that I date my success. 

"I think that it's in one of Rider Haggard's novels 
that an Englishman among the natives of Africa built 
a reputation as a medicine-man because he foretold an 
eclipse of the sun. Relatively, you see, he was a wizard. 

"Self ridge scored a great success by establishing an 
American department store in London. Among the 
conservative Englishmen he shone as a veritable pio- 
neer of progress. Another case of relativity. 

"A few years ago a certain bank officer accepted a 
position as president of a conservative old wholesale 
house. The reforms which he instituted, reforms 
the need of which were obvious to any live busi- 
ness man of the present generation, resulted in the 
saving of hundreds of thousands annually. His 
salary is one hundred thousand dollars a year. 
Does he earn it? Yes and no. Principally no. 
He has been worth that sum in the particular posi- 
tion which he fills. But the point is that no room 
for such sweeping reforms should have existed. Dry 
rot had set in and the house was moving forward 
upon the impetus gained from years of former pros- 
perity. Any ten-thousand-dollar-a-year man could 
have achieved equal results. But in relation to his 

business environment, the banker was a real Napoleon. 

167 



MODERN METHODS IN THE OFFICE 

Hence his present salary. Columns of adulatory liter- 
ature have been written regarding his achievements. 
It was from reading about this case that I awoke to a 
realizing sense of the truth of this theory of the rela- 
tivity of ability. 

"I had been bucking the business battle for about 
ten years. I started as stock-boy in a live young 
wholesale dry-goods house. After a year or two of 
this apprenticeship I became inside salesman; later I 
was given an outside territory. At twenty-six I found 
myself assistant sales manager, with the advertising 
and correspondence considered as being particularly 
my province. 

"By nature I am strong on the constructive or 
business getting end of commercial life, but weak on 
the conservation end. Therefore I made a deliberate 
study of this feature. I read deeply on the findings 
and methods of efficiency experts, and finally took a 
course in scientific management. This involved methods 
of payment as well as actual waste elimination. My 
ideas, when applied, resulted in substantial savings ; but 
although, if I may say so, I was a competent business 
man, I was surrounded by a corps of live wires. Our 
house was reputed to be the most enterprising in the 
trade. No particular individual shone by contrast. 

"Then came my conclusion to tie up with some old 
house of the type which the banker had discovered. 
I had not far to seek. The concern I'm now connected 
with was established back in the fifties. For the past 
thirty years it has been losing ground. Not actually, 
you understand (its volume of business has gradually 

168 



TOWARD EFFICIENCY 

increased), but in comparison with its competitors. 
All its executives were men of from fifty-five to seventy- 
five years of age, and the house was suffering from in- 
breeding. We hear a lot nowadays about promotion 
from the ranks. But this can be overdone. Outside 
blood is occasionally necessary. Conceive a big whole- 
sale house to-day which never runs a line of adver- 
tising copy in its trade media. That's the condition 
I found here. No mailing campaigns were conducted. 
No samples were ever distributed. No measures were 
used for obtaining business excepting the mainte- 
nance of an inadequate sales force. 

"And the waste and lost motion in handling and 
displaying goods due to archaic fixtures and a policy 
of laissez-faire resulted in the loss of large sums an- 
nually. Even the credit department was feebly ad- 
ministered. But so great is the power of good-will 
and prestige that the volume of sales far surpassed 
that yet attained by the house with which I got my 
training. 

"Well, to make a long story short, I succeeded in 
jimmying an entrance here. I took a subordinate 
position at a small salary. Then I began to make the 
fur fly. At first I was confronted with a great deal of 
opposition. But as reform after reform showed tan- 
gible results in dollars and cents, I was given a freer 
hand. 

"In one department alone, that of traffic and rout- 
ing of freight, an expert whom I engaged recovered 
ten times his fee from overcharges. I installed and 
developed a mail-order department. We issued a 

169 



MODERN METHODS IN THE OFFICE 

catalogue. We began to support our traveling-men 
with aggressive mailing campaigns. Liberal use of trade 
media in launching trade-marked specialties brought 
good results. Younger salesmen were employed; the 
superannuated relics I found here, pensioned. 

"Analysis of our territory displayed amazing incon- 
sistencies in the demand for various products. Study 
of the records indicated unsuspected reasons for this 
condition, and suggested methods of bolstering the sales 
of stickers. Graphs are now used extensively through- 
out the establishment. The old-timers at first regarded 
them suspiciously as newfangled tomfoolery. But they 
soon learned to interpret them. 

"In a word, I merely applied here the methods in 
vogue in the concern with which I was previously 
connected. And because, backed by the prestige of 
this old house, the results have staggered the pro- 
prietors, it was not long before I was appointed sales 
manager at a salary running well into five figures an- 
nually—over twice what I received in my former 
position. 

"Here I shine as the last word in modern efficiency. 
Just a case of relativity, you see. Too many able men 
are buried because they've carried their coals to New- 
castle; I carried mine to Greenland." 

Foresight — Its Value in Launching New Enterprises 

"I was a comparatively young man when I learned 

from harsh experience the value of analysis as applied 

to the field for a new product," said a business man. 

170 



TOWARD EFFICIENCY 

"I was approached by the inventor of a rope- 
measuring machine with the purpose of inducing me 
to supply a portion of the necessary capital. A me- 
chanical engineer who at my request passed upon the 
merit of practicability reported that it was a remark- 
able invention — feasible, practicable, thoroughly per- 
fected. I then advanced ten thousand dollars for a 
substantial interest. Upon placing our machine upon 
the market, we discovered that although eagerly pur- 
chased by the concerns to whom it was useful, the 
number of these was so small that there was no hope 
of establishing a sound, profitable business. In other 
words, the market was too limited to warrant the ex- 
pense of manufacture. Every one concerned in the 
affair lost money. Intelligent analysis would have 
enabled me to avoid making this mistake. 

" Thousands of similar instances could be cited. 
Only a few weeks ago the inventor of an automatic 
device for registering the thickness or, technically, the 
weight, of wrapping-paper showed me his machine in 
operation. 

"'That ought to be bringing in a comfortable in- 
come/ I remarked. 

" He laughed. 

"'It's merely an interesting toy/ was the reply. 
'There's no real demand for it. Any good paper sales- 
man can tell the weight of paper through pinching it 
between his thumb and forefinger. This has been on 
the market for several years now. I've received 
barely enough to meet my expenses in perfecting it.' 

"The nature of many a new enterprise involves a 

171 



MODERN METHODS IN THE OFFICE 

certain unavoidable element of risk. But in many 
cases unnecessary risks are taken. For example, one 
would say offhand that many thousands of dollars 
must be ventured in establishing a new magazine. 
But an acquaintance of mine had one securely founded 
before risking more than a few dollars. His method 
was simple. He saw an opportunity for launching a 
new trade medium; the field was unoccupied; it 
seemed like a dead certainty that a potential demand 
existed. 

" Instead, however, of publishing an initial issue, he 
issued a prospectus outlining his plan in detail and 
mailed it, accompanied by a letter containing a special 
introductory reduced-price subscription offer to a list 
of logical prospects. He promptly received several 
thousand responses with remittance inclosed. Thus 
he had a solid subscription list guaranteed before he 
purchased a pound of paper or set a line of type. 
Furthermore, with the backing of this subscription 
list he was enabled to secure a great deal of adver- 
tising for his first issue. 'Be sure you're right, then 
go ahead/ is the policy by which he operates. 

"This man appropriated this idea from the method 
pursued by a big publisher of technical books. When- 
ever an idea for a new volume occurs to this pub- 
lisher, he sends out several thousand letters to 
selected lists, soliciting orders for it. When the 
money arrives, he promptly returns it with the ex- 
planation that the book has been delayed in the 
press. If the percentage of returns indicates that 
the volume will sell readily, he then goes ahead with 

172 



TOWARD EFFICIENCY 

its preparation. But if the evidence is adverse, he 
merely abandons the plan. 

"All of us are gifted with hindsight. It's the man 
with that rare quality, foresight, who succeeds. And 
foresight is merely a synonym for common sense.'' 

How One Man Secured a Promotion 

"Often a man will find himself caught in an eddy 
of the promotion stream," remarked the advertising 
manager of a great department store, "and it seems 
as though it were well-nigh impossible to extricate 
himself. Millions of men are marking time to-day, 
waiting for the man above them to be promoted or 
to leave. And, in most cases, they seem to feel that 
there is nothing to be done about it. 

"I believe in shaping circumstances rather than in 
permitting circumstances to shape me. Every man 
is more or less the victim of events; even Napoleon 
finally fell. But that does not prevent me from putting 
my shoulder to the wheel of fate and trying to do my 
part in speeding up its revolutions. 

"Some years ago I found myself side-tracked. I was 
employed as assistant to the advertising manager of 
a medium-sized store. Because I lacked the title of 
1 manager,' it was difficult for me to secure another job 
which would be any better than the one I held. My 
normal line of advancement, therefore, was to step 
into my superior's shoes when he left. But that's 
where the rub came. Packard, my boss, was a very 
able man, but he lacked self-confidence. He was well 

173 



MODERN METHODS IN THE OFFICE 

equipped to hold a bigger job, but did not realize it. 
Consequently he was content to remain where he was 
at three thousand dollars a year. 

"This, naturally, blocked my progress. If I left, it 
would be only to take another job as i assistant.' 
I wanted the prestige accruing from Packard's posi- 
tion; then I myself could be on the lookout for a better 
opening. 

"After studying the situation from all angles, I 
concluded that it was up to me to get Packard into 
a bigger job; that would clear the track for me. 

"As we were the best of friends, my task seemed far 
from impossible. I began to quietly push my superior 
into the limelight. Naturally a retiring sort of fellow, 
I saw to it that he was called upon for speeches at 
the local ad. club's meetings. 

"Then I began to clip his ads. and send them in to 
the trade papers for reproduction and comment. They 
created a most favorable impression, and finally I got 
him to write some articles for the big advertising organs. 

"Some months after I had begun my efforts in 
Packard's behalf I got wind of an opening in a neigh- 
boring city. It was a big job, one which would pay 
twice or three times the salary my superior was re- 
ceiving. I knew that I could not secure it for myself, 
but I felt that Packard stood a mighty good show to 
land it. 

"I began pulling wires. Among other measures, I 
induced a friend of mine, who was acquainted with the 
management, to write a letter suggesting my superior 
as the logical man for the job. 

174 



TOWARD EFFICIENCY 

"A few days later Packard was amazed to receive 
an offer at a big advance over the salary he was then 
getting. He accepted it and I, in turn, found myself 
holding down his desk. Packard has never learned 
that I was responsible for his advancement. Since 
then I have pursued similar tactics once or twice with 
equally successful results.' ' 

$150,000 for Information 

" Inertia and conceit, those are the two qualities 
which limit the progress of most business men," said 
an efficiency expert. "The first is closely allied to sheer 
mental laziness; the second arises from contrasting 
their present condition with that of some former period. 

"There are a lot of bush-leaguers in the world of 
•business who are all swelled up over small successes. 
If they'd compare their performance with the major- 
league players, they'd take a tumble and, perhaps, 
be able eventually to qualify for the big league. 

"'What can any outsider tell me about running my 
business?' is their indignant reply to the suggestion 
that they permit an expert to overhaul their methods. 

"When you tell this type of egoist that Harrington 
Emerson received one hundred and fifty thousand 
dollars yearly merely for overhauling and applying 
his principles to one plant, with the result that pro- 
duction costs were reduced twenty-five per cent, and 
the men's earnings increased ten per cent., he opens 
his eyes. 

"Now in this case Emerson was an ' outsider.' He 

175 



MODERN METHODS IN THE OFFICE 

sold and delivered nothing but brains. iVnd the pur- 
chaser made a very profitable investment. He did 
not permit conceit to stand in his way. The conceited 
man would laugh at the idea of paying any one one 
hundred and fifty thousand dollars for telling him how 
to run his business, and, in the mean time, his com- 
petitor may avail himself of expert service, cut his 
costs, and undersell him. No one knows it all. 

"It's the man who avails himself of the community's 
composite brain — in other words, who secures experts 
to stimulate various departments of his business — who 
will increase his production and lower his costs." 

What Analysis Has Done for Modern Business 

" Every man makes mistakes/' said a successful 
executive, the other day, "but it's the man who 
doesn't make the same mistake twice who wins. Most 
men keep on making the same mistake all their lives. 

"It seems to me that, of all departments of com- 
mercial progress, greater strides have been made in 
this direction, the elimination of mistake repetition, 
in the past ten or fifteen years, than in any other. 
Searching analysis applied to all branches of business 
is rapidly elevating commerce to the plane of an exact 
science. 

"Talk to an efficiency expert, for example. He'll 
tell you of thousands of mistakes, negative mistakes, 
which have been made daily for a generation or more 
in great manufacturing plants. Analysis has disclosed 
these mistakes, with the result that in many cases 

176 



TOWARD EFFICIENCY 

output has increased one hundred per cent, with a 
fifty per cent, reduction of the pay-roll. 

"For a century mistakes have been made in the 
conversion of fuel into steam. Tests covering scores 
of plants have demonstrated that, out of every three 
tons of coal burned under the boilers of this country's 
manufacturing plants, one was wasted. 

"Many factors contributed to this result. Incom- 
plete combustion, too much air, too thick or too thin 
a fuel bed, the wrong kind of coal — all these faults 
existed and no one thought of remedying them. To- 
day a steam engineer can step into your plant and by 
a thorough analysis, combined with exhaustive tests, 
cut your fuel bill, perhaps, twenty or thirty per cent., 
with no reduction of steam production. Another case 
of a mistake which should not be repeated : 

"Suppose you have a new food product which you 
wish to introduce by a sampling campaign. Which 
is the best method, to merely distribute your samples 
from door to door ; to follow this plan, but to combine 
it with a sales talk to the housewife; or to distribute 
your samples through the grocers? Analysis has 
proved that where the first method will result in the 
sale of one package of your product, the second will 
sell three and the third will sell ten packages. So 
there's a mistake which it is no longer necessary to 
make. 

"For years plants operated without cost systems. 
Consequently, in submitting bids for contracts the 
same mistakes were made year after year. An effi- 
cient cost system, which is merely an analysis of your 

177 



MODERN METHODS IN THE OFFICE 

expenses enabling you to apportion them correctly, 
eliminates the danger of bidding too high or too low. 

" Advertising, a field in which nearly a billion dol- 
lars is spent annually in this country, offers another 
example of the value of analysis. Formerly 'ads./ 
booklets, sales letters, and other advertising literature 
were prepared and published with the hope that the 
plan and copy were the best for the purpose. Now in 
campaigns of any magnitude perhaps a dozen 'ads.' or 
letters, as the case may be, are prepared, tested on 
small units, and the results carefully tabulated and 
analyzed. Then the one best 'ad.' or letter is applied 
on a national scale. Another case of avoiding mistakes. 

" Fifty years ago business men guessed; we know. 
They succeeded in spite of constant repetition of the 
same mistake. We don't make the same mistake more 
than once. And if we're willing to learn by the other 
man's experience, we don't make it once." 

Getting the Right Attitude 



a 



My experience has convinced me that there is not 
so much difference between people's brains as the 
difference in salaries would indicate," said a business 
man. "But there is a tremendous difference in people's 
attitudes toward their work. 

"As a rule, those who develop a genuine interest in 
their jobs make good; those who don't, fail — that's 
my conclusion. 

"Thousands of men are genuinely interested in base- 
ball, prize-fights, politics, lodge activities, and the 

178 



TOWARD EFFICIENCY 

movies. But when it comes to getting right down 
to their jobs and seeking to evolve better and more 
efficient methods of handling them, they're not there. 
They walk through the day's work in an automatic 
fashion, as though hypnotized. 

"As a matter of fact, a real interest in almost any 
kind of work can be developed. But a certain amount 
of will power and application is required before one 
drills deeply enough into the subject to tap the reser- 
voir of unforced and spontaneous interest. 

"Here is an actual instance to show just what I 
mean. At one time I was appointed advertising man- 
ager for a correspondence school which taught illus- 
trating and cartooning. The course consisted of twenty 
lessons. 

"After sizing up the situation, I concluded that sales 
would be greatly stimulated if we would include a 
money-back guarantee: 

Your Money Back Without Question, 
If, After Completing 10 Lessons, 
You Feel Dissatisfied. 

"That was the offer I advocated. 'But we'll be 
swamped with demands/ protested the president. 'We 
can't afford to make such an offer/ 

"'Note that I insist upon their completing ten les- 
sons/ I replied. 'By that time the pupils will feel so 
pleased with their progress that they'll be glad to 
finish the course. After the eighth or ninth lesson the 
danger-point will have been passed. It's in the early 
stages that they feel discouraged.' 

"My idea was adopted and proved to be a complete 

13 179 



MODERN METHODS IN THE OFFICE 

success. Only two requests for a return of the tuition 
fee were ever received. By the tenth lesson, just as 
I anticipated, a genuine interest was awakened. 

"Of course, illustrating is inherently a more in- 
teresting subject than many kinds of work, hence I 
am not justified in claiming that this instance applies 
to all cases. But you see the principle I'm seeking to 
emphasize. 

'Too many men are time-servers and clock-watch- 
ers. They look upon the day's work as a boy looks 
upon school — an involuntary imprisonment. You can't 
blame the boy, but the man should have a different 
attitude. And he can attain one. 

"I have seen the addition of one new member to a 
big office force completely change the atmosphere of 
the entire establishment. In this case, a young fellow 
who did considerable reading along lines of business 
joined the organization. He began to install some re- 
forms, suggested the payment of the typists on a 
piece-work basis, etc. Soon others began to emulate 
him, and within a few months a listless group of time- 
servers was converted into an enthusiastic force of 
workers, constantly on the watch for new and improved 
methods. Even the office-boy, who had previously 
consumed about half an hour morning and night 
carrying heavy ledgers and files into and out of the 
big vault, awakened to the inefficiency of that method 
and demanded the installation of a little cart to lighten 
his labors and speed up his work. This little device 
cut down the time required for that particular task 
seventy-five per cent. 

180 



TOWARD EFFICIENCY 

"An able manager should, like a good teacher, in- 
spire his subordinates with a real interest in their 
work. But competent executives are scarce. It is 
up to each man to develop his own capacities. If he 
can but once grasp the right attitude, what was previ- 
ously drudgery becomes transformed into pleasure. 
His days seem too short to accomplish all that he 
wishes. He grows and expands. And eventually the 
difference becomes apparent in his pay-envelope." 

Heat, Ventilation, and Efficiency 

"In winter," said the superintendent of a manu- 
facturing plant, "the heating and ventilation problem 
looms large. It is only of late years that efficiency 
experts have realized the close connection between 
these factors and volume of production. 

"Just as a reduction in working-hours has, to the 
management's surprise, often resulted in a greater 
output, so the installation of an expensive heating and 
ventilating equipment, for purely humanitarian mo- 
tives, almost always proved to be a splendid invest- 
ment. 

"Man's efficiency is just as dependent upon a copious 
supply of pure air of the right temperature as it is 
upon his having a sufficient amount of nourishing food. 

"An overheated shop means enervation and list- 
lessness; an underheated one means restricted output 
because of the stiffening, paralyzing effect of cold. 

"And equally important as the temperature item 

is that of the percentage of humidity. Too much 

181 



MODERN METHODS IN THE OFFICE 

humidity is one of the most binding brakes upon a 
satisfactory volume of output. 

"Each building presents an individual problem to 
be solved only by a competent specialist. But, in 
general, it has been found desirable to have the warmed 
incoming air discharge at a considerable height from 
the floor and distance from the walls. The stream is 
then directed toward the walls; as it cools it descends 
and finds an exit in vents located in the walls near the 
floor. I am referring now to a combined heating and 
ventilating system in which blowers are used to dis- 
tribute air from outside. 

"Then there are, of course, blower systems which 
merely rehandle and reheat the inside air, and, finally, 
the simple direct radiation from steam-coils plan. 
Tests have indicated that, from the viewpoint of coal 
consumption, the latter is the most expensive. 

"Steam-heating by means of exhaust steam is ex- 
tremely economical. There is practically no difference 
between the heating value of live and exhaust steam. 
The engine's efficiency is slightly reduced, to be sure, 
because of a hardly perceptible back pressure. But the 
saving in fuel far counterbalances this drawback. 

"The main point is to have the one best system, 
no matter what the cost. For the proper conditions 
react promptly upon the operatives' efficiency. I 
know of one case where the volume was increased 
thirty per cent, as a direct result of substituting a 
good system for one which was totally inadequate. 
Against this gain the cost of the system and its upkeep 
was negligible. In the final analysis, it's your men who 

182 



TOWARD EFFICIENCY 

make your money. Give them satisfactory working 
conditions, and you will reap a rich reward in actual 
dollars and cents." 



Are You Availing Yourself of this Institution's 

Facilities? 

"Two lines of educational work have been inaugu- 
rated and strenuously carried out by the Commercial 
Museum of Philadelphia," said Mr. W. P. Wilson in his 
recent speech at Washington. "The first, a foreign- 
trade bureau, has arduously labored to convince the 
manufacturer of the urgent necessity of occupying some 
of the foreign fields of trade before they were possessed 
by other countries. This work has been pushed in all 
parts of the United States and with all lines of manu- 
facturers whose products could find normal sale in 
any locality abroad. This foreign- trade bureau fur- 
nishes the manufacturer with all necessary data on the 
requirements and opportunities of foreign markets and 
on tariffs existing in different ports of entry; on trade- 
marks and patent laws, consular relations, shipping 
routes and rates, and similar information relating to 
the invoicing and transportation of goods for foreign 
countries; methods of payment and granting of credits; 
competition to be met in foreign markets, and names 
of reliable business houses throughout the world. The 
bureau has a list of more than three hundred and 
seventy-five thousand foreign firms, with information 
regarding their lines of business and importance in 
the trade. It conducts a free reference library of com- 

183 



MODERN METHODS IN THE OFFICE 

merce and travel, with over seventy-eight thousand 
volumes, containing over four hundred foreign and 
domestic directories, both city and trade; official bul- 
letins of every country publishing them; consular re- 
ports from all countries which issue them; seven 
hundred and fifty of the leading magazines, trade jour- 
nals, and dailies, of which over one-half are from foreign 
countries. This library, with its very complete list 
of foreign documents, is used by a large corps of as- 
sistants for the direct benefit of exporting firms, and 
to give them the needed help they require. This work 
is done for any manufacturer at actual cost of investi- 
gation and compilation. 

"The second line of educational work done by the 
Commercial Museum is for the schools of the city of 
Philadelphia and the state of Pennsylvania." 

Commercial Abbreviations in the Export Trade 

Now that many American business men whose oper- 
ations have been confined to the limits of our own 
country are beginning to develop markets in other 
countries it is well that the foreign interpretation 
of certain commercial abbreviations be well under- 
stood. 

Many misunderstandings in times past have been 

due to the fact that buyer and seller have interpreted 

f.o.b. — f.a.s. — f.o.r. — and c.i.f. — differently. In more 

than a few cases bitter disputes, with a consequent 

loss of valuable patronage, have ensued. 

Our consul at Rome submits the following explana- 

184 



TOWARD EFFICIENCY 

tions of commercial abbreviations as universally in- 
terpreted in Italy. As a matter of fact, these apply 
throughout the export world. 

"F.o.b. — free on board — is invariably understood 
to mean free on board ship at seaport. In Italy it is 
never understood to mean free on board cars. For 
instance, f.o.b. New York means that freight from the 
inland place of manufacture or shipment, insurance 
(if any) during the railroad transit in the United 
States, cartage from depot to dock, and loading charges 
at dock are all paid by the exporter. 

"F.a.s. — free alongside (ship) — means that railroad 
freight and insurance in the United States and all cart- 
age charges to the dock are paid by exporter. The 
loading charges from dock to ship in this case are paid 
by the purchaser. 

"F.o.r. — free on rail — means loaded on railroad cars 
at the point quoted; e. g., by f.o.r. Cincinnati, or f.o.r. 
New York, it is understood that the purchaser buys 
the goods on the railroad cars at Cincinnati or New 
York free of all charges. 

"C.i.f. — cost (of goods), insurance, freight. By this 
term it is understood that the exporter sells the goods 
with all charges paid to the point quoted. For ex- 
ample, a quotation of coal at $12.50 per ton, c.i.f. 
Naples, would mean that the coal .is sold by the ex- 
porter at that price on shipboard at Naples, the ex- 
porter having paid all charges, including ocean freight 
and insurance. The Italian buyer would have to pay 
the cost of unloading from ship, customs duties, and 

handling charges in Italy.' ' 

185 



MODERN METHODS IN THE OFFICE 

The Government's Pamphlets on Business 

A special agent of the Department of Commerce 
recently deplored the fact that so few business men 
availed themselves of the bureau's services. 

It is true that many fail to utilize the government's 
activities in their behalf. Aside from the publication 
of Commerce Reports, the bureau's daily paper, a 
collection of nearly one hundred and forty special 
bulletins have been prepared and can be obtained for 
five or ten cents apiece upon application to the Super- 
intendent of Documents. 

These bulletins cover a vast field, applying to both 
domestic and foreign business, although principally to 
the latter. They are listed in a catalogue entitled, 
"List of Publications," issued by the Bureau of Foreign 
and Domestic Commerce, which can be obtained by 
application to the Superintendent of Documents at 
Washington or to the local office of the bureau. 

Methods, Not Money, Win Success 

"An ounce of brains is worth a pound of money in 
achieving success," remarked a banker of long ex- 
perience. 

"When a man applies for a loan, I'm a good deal 
more interested in learning what's in his skull than 
what's in his pocket-book. 

"Money can be lost with startling rapidity; it's 
seldom that a man loses his intelligence. 

"Brain power evolves proper methods, and right 

186 



TOWARD EFFICIENCY 

methods make money. What I call brains, business 
brains, are exhibited when a man enters a highly 
competitive line and, through the superiority of his 
methods, wins success. 

" Merely that a man has made a few millions doesn't 
prove the possession of brains. He may have found a 
gold-mine, or gambled on Wall Street successfully, 
or bought Ford stock in the early days. But when I 
see a man open a little retail store, for instance, and, 
a little later, open another, then gradually add to 
his stores until he's operating a successful chain, I 
know that man has business brains. He's growing rich 
in a field where thousands are losing money; luck 
cannot enter into a success of that type. 

"The man simply has evolved better methods than 
his competitors'. He has demonstrated that he has 
brains. That type of man can borrow more here on 
comparatively small assets than many a man with 
three times his money — that is, if he wants the money 
to use in expanding along the lines in which he has 
demonstrated his ability. If he wants to embark in 
another field, that is something else again. 

"No, money is not the main factor in success. 
Thousands of corporations representing sizable aggre- 
gations of capital are standing just about even from 
year to year. And I have seen small competitors 
overtake them and leave them far in the rear merely 
because of superior man power. Men and methods — 
there's a combination which has money backed off 
the boards. Bulk in business is as often a handicap 
as an asset. Look at the little specialty stores which 

187 



MODERN METHODS IN THE OFFICE 

are giving the department stores such a run for their 
money. They represent a comparatively small in- 
vestment, but they're flourishing like the green bay 
tree. 

" Lines which were never before represented by 
specialty shops are beginning to appear. New York 
city is supporting a successful chain of five or six 
hosiery stores. Wasn't it Fitzsimmons who once 
remarked, 'The bigger they are, the harder they 
fall'? 

a In a small store the sense of unity of interest be- 
tween employer and employee is stronger than in the 
great department store. It is so obvious to the sales- 
people that the concern's success is dependent upon 
their efforts that they work with more interest. They 
feel more responsibility. 

"If you, for instance, were one of ten voters instead 
of one of fifteen million, wouldn't you make up your 
mind regarding the merits of the candidates after a 
careful study of the opposing claims rather than voting, 
as do most of our fifteen million, as a result of the im- 
pressions left by various cartoons they may have noted? 
That's one reason small stores can successfully com- 
pete with large ones. 

"Let no man tell me that lack of capital is holding 
him down. If he had capital he'd probably soon lose 
it. Exceptional ability in business life will generally 
win its way. Which is a quite different thing from 
saying that exceptional ability is necessarily of any 
particular value to the community. In fact, the reverse 
is sometimes the case." 

188 



TOWARD EFFICIENCY 

How the Bureau of Standards Serves the Business Man 

"That business is one thing and government an- 
other is a view still held by many people/' remarked 
a manufacturer. "But daily we see the two be- 
coming more inextricably combined. The reason is 
clear. 

"By assigning certain tasks and duties to the govern- 
ment the community is spared the economic waste in- 
volved in maintaining similar facilities in hundreds of 
private manufacturing plants. 

"A conspicuous example of this is the Bureau of 
Standards at Washington. This department, manned 
by scientific and technical experts, is equipped with 
complex and expensive testing machinery which would 
be used perhaps only once or twice a year by the aver- 
age manufacturer. But, as it is accessible to every 
concern in the country, it is in constant use. Here are 
a few of the department's activities during the month 
of June: 

p A six-cylinder automobile engine has been installed 
in the gas-engine-testing laboratory at the bureau, to 
investigate the merits of materials that are being mar- 
keted with the claim that when added in small quanti- 
ties to gasolene they produce increased efficiency, to- 
gether with freedom from carbonization. 

'' Railroad-track scale tests have been conducted 
in Minnesota by Test Car No. 1, co-operating with 
the railroad and warehouse commission of that 
state. During June twenty-nine railroad-track scales 

189 



MODERN METHODS IN THE OFFICE 

were tested. Test Car No. 2 has been operating 
in the states of Maryland, West Virginia, and Ken- 
tucky and tested thirty -eight railroad -track scales 
during June. 

"A manila rope nine inches in circumference was 
submitted by the Panama Canal. It was tested in the 
large Emery machine and failed at a load of 57,800 
pounds. 

u Miscellaneous testing included rubber and leather 
goods for the Panama Canal and samples of miscel- 
laneous materials submitted by manufacturers to the 
general supply committee in competition for govern- 
ment contracts. During June 73 samples were tested. 
In addition to these, 292 samples of paper were tested, 
170 of which were for the Public Printer and 118 for 
other executive departments, 

"A women's novelty store in Washington was given 
assistance in determining the fiber content o( a, ship- 
ment of women's nets. A New York dealer in spool 
thread submitted two spools of different makes which 
were marked 1,200 yards to the spool. Examina- 
tion showed that one was 20 yards short and the 
other 72 yards short. This kind of thread is employed 
in garment -making and in sewing on buttons. If 3 
inches of thread are allowed to each button, 72 yards 
would sew on 804 buttons. 

k Special assistance was given to the Office of Indian 
Affairs in making awards on large quantities o^ uniform 
and other cloths. Specifications were prepared for 
prison clothes for the District Commissioners. Tests 
were made upon 441 samples of textiles." 

190 



TOWARD EFFICIENCY 

Why the Business Man Should Understand Economics 

"Too many business men are mere opportunists," 
said a manufacturer, recently. "They are thoroughly 
posted On the affairs with which they deal d.'iily, the 

latest production, accounting, and sales methods, for 
example; but when it comes to planning for the future 
they're all at sea because they know little or nothing 
of practical economics. 

"Some months ago I was reading an interesting book 
entitled, Gold Supply and Prosperity, edited by Byron 
W. Holt. 

"Mr. Holt assumes that the production of gold will 
increase at an average rate of at least five per cent. 
for the next ten years, and from this premise formu- 
lates the following conclusions. Conclusion number 
six has greatly influenced my policy in shaping the 
future course of this concern. 

(1) That the value of gold will depreciate as the quantity in- 
creases, though not, perhaps, at the same ratio. 

02) That this depreciation will be measured by the rise in the 
average price level. 

0*) That rising prices will soon lead again to rising and higher 
interest rates. 

(4) That, because of high interest rates, the prices of bonds 
add most oilier long-time obligations drawing fixed tides of in- 
terest, dividends, or income will again decline to low levels. 

(f>) That, because of rising prices and high interest rates, the 
cost of materials and supplies will tend to decrease the net profits 
of all concerns the prices of whose products or services either can- 
not be advanced at all or are not free to advance rapidly. 

((J) That, because of rising prices, the net profits of all concerns 

I'.u 



MODERN METHODS IN THE OFFICE 

that own their own sources of materials and supplies will tend to 
increase. 

(7) That, because of rising prices of commodities, the market 
prices of all tangible property will tend to rise. This includes 
lands, mines, forests, buildings, and improvements. 

(8) That, because of rising prices of commodities and property, 
the prices of the stocks of corporations holding commodities or 
property will tend to advance. 

(9) That, because of rising prices, and therefore of cost of liv- 
ing, wages must and will tend to advance. 

(10) That, because wages and salaries will not rise as much or 
as fast as will prices and the cost of living, there will be dissatis- 
faction and unrest among wage and salary earners. 

(11) That, because of rising prices and property, there will be 
much speculation in commodities, stocks, and real estate. 

(12) That, because of the great profits that will result from 
speculation, honest industry will be discouraged and recklessness 
and extravagance will be encouraged. 

(13) That, because rising prices will decrease the purchasing 
power of debts, and thus aid debtors at the expense of creditors, 
they will discourage saving and thrift. 

(14) That, then, an increasing output of gold means rising prices, 
rising wages, high interest rates, the scaling of debts, speculation, 
unjust distribution of earnings and wealth, and general dissatis- 
faction and discontent." 



Overstocking 4- Poor Accounting + Quality Stock 
= Failure 

"Did you ever stop to think of the economic loss 
to the community involved in commercial failures?' ' 
said a business man. "For the cost ultimately falls 
upon each one of us just as does the cost of fires. Fires 
mean higher insurance rates as well as higher prices 
for building materials. 

192 



TOWARD EFFICIENCY 

" Failures must be discounted in the price set for 
the sale of commodities, consequently we all pay more 
for goods than we would if no one ever failed. 

" Furthermore, a failure means that an organiza- 
tion which cost money to create, and which supposedly 
served a useful economic purpose, is dissolved. The 
units comprising the organization often are out of 
work for some time, hence do not function to their 
fullest extent of usefulness for a considerable period. 
Also the concern's good-will is irretrievably lost, and 
here again the community pays a portion of the price. 
Good-will costs money. Its possession means that 
business can be transacted more cheaply than other- 
wise. Dissolve it into thin air, as a failure does, and 
an actual, though intangible, asset is lost to the com- 
munity. 

"Many failures are unnecessary. Often a man 
threatened with bankruptcy could weather his diffi- 
culties if he knew just what was wrong with his busi- 
ness. It was a realization of this fact that actuated 
the Wholesale Men's Furnishings Association of New 
York to appoint an advisory committee for the pur- 
pose of coaching dealers who are in a precarious con- 
dition. 

"As soon as a retailer begins to show signs of falling 
into the slow-pay division, a letter is written him sug- 
gesting that he talk over his troubles with the com- 
mittee. With his consent, they then study his books, 
analyze his problems, and proffer advice. During the 
first six months of this year thirty-six dealers were 
investigated, and of that number twenty-eight were 

193 



MODERN METHODS IN THE OFFICE 

re-established upon a sound basis. In the balance of 
eight cases the business was wound up. But the sig- 
nificant feature of this record is that the need in the 
majority of cases was for expert advice. 

"An analysis of the various cases demonstrated that 
the weak spots consisted of: 

1. Overstocking. 

2. Carrying goods of too high quality. 

3. Lack of proper accounting methods. 

"Expert advice quickly remedied these three diffi- 
culties. This merely supports the conclusions of the 
commercial agencies that thirty per cent, of all failures 
are due to incompetency, and twenty-nine per cent, 
to the same cause disguised under the phrase, 'lack of 
capital. ' 

"In my opinion, this plan of the Wholesalers' Asso- 
ciation will soon be widely adopted. It is in line with 
modern ideas; it means elimination of waste and lost 
motion; in a word — efficiency." 

Is Your Business Suffering from Arteriosclerosis? 

"In a speech delivered before the Press Club in 
Washington/ ' remarked a business man, "President 
Wilson said: 

" 'There is a simile that was used by a very interest- 
ing English writer that has been much in my mind. 
Like myself, he had often been urged not to try to 
change so many things. 

"'I remember, when I was president of a university, 
a man said to me, "Good Heavens, man! Why don't 

194 



TOWARD EFFICIENCY 

you leave something alone and let it stay the Way it 
is?" And I said: "If you will guarantee to me that it 
will stay the way it is, I will let it alone; but if you 
knew anything you would know that if you leave a 
thing alone it will not stay where it is. It will develop, 
and will either go in the wrong direction or decay/' 

"'I reminded him of this thing that the English 
writer said, that if you want to keep a white post 
white you cannot let it alone. It will get black. You 
have to keep doing something to it. In that instance 
you have got to paint it white frequently in order to 
keep it white, because there are forces at work that 
will get the better of you. Not only will it turn black, 
but the forces of moisture and the other forces of 
nature will penetrate the white paint and get at the 
fiber of the wood, and decay will set in, and the next 
time you try to paint it you will find that there is 
nothing but punk to paint.' 

"This applies just as strongly to the administration 
of a business as it does to that of a nation. 

"Every salesman knows that, as a rule, the most 
difficult concern to which to sell any time- or labor- 
saving device or any constructive business service is 
the conservative old firm which feels securely intrenched 
behind its record of a generation's success. And these 
are the concerns which are in greatest danger of dis- 
aster. 

'This attitude is a symptom of incipient arterio- 
sclerosis, or hardening of the arteries. The mental 
arteries of such an organization become so incrusted 
with a lime-like deposit composed of equal parts of 

14 195 



MODERN METHODS IN THE OFFICE 

inertia, complacency, and prejudice that eventually they 
become utterly impervious to the influx of life-giving, 
regenerating ideas; vigorous young competitors secure 
all the new business which develops and gradually 
annex a good many of their old customers, and finally 
comes failure, or, at best, liquidation. 

"Many a man has been prosperous at fifty and 
bankrupt at sixty-five. He always has some good reason 
to advance. Shifting trade currents have left him 
stranded, or the demand for his product ceased before 
the substitution of cheaper materials. But the real 
explanation was mental arteriosclerosis. 

"Only the other day I was talking to an old-timer 
who has desk room in a down-town office-building, 
and occasionally sells a little belting. ^ _ 

"'A few years ago I was doing a big business, he 
related. ' But now there's no business to be done. The 
advent of motor-driven machinery has destroyed the 
business. Some of the manufacturers are getting des- 
perate/ he continued. 'They've started advertisingr 
He picked up a copy of a technical magazine and 
pointed to a belting ad. 'Look at that!' he exclaimed. 
'Isn't that a joke? This man advertises that the 
leather he uses is carefully selected and that he buys 
only that from the side of the animal opposite to that 
upon which it habitually lies. He claims that they 
lie on one side only. I happen to know who is respon- 
sible for that wasted money. It's a young college fellow 
who inherited his father's business. The old gentleman 
would turn in his grave if he knew how the son was 
making ducks and drakes of his money. Advertising 



TOWARD EFFICIENCY 

may pay in some lines of business. It's a sheer waste 
of money to spend it on pushing belting.' 

"'A typical case of arteriosclerosis/ I reflected. 
'He thinks that the loss of his business is due entirely 
to a change in power transmission methods and he's 
convinced advertising represents money thrown away. 
I'm just interested enough to see what the figures 
prove regarding the belting business.' 

11 Reference to government reports demonstrated that 
in 1904, at the time the old man was doing a big 
business, the value of the belting butts tanned in the 
United States totaled $10,647,078. 

"In 1914 the amount came to $12,876,554, or over 
twenty per cent, more than ten years previous." 

Job Analysis in Modern Industrial Plants 

"Before I assumed charge of this department," said 
the employment manager of a large corporation, in 
the course of an interview with the writer, "I made a 
careful study and analysis of every job in the plant. 
This was to enable me to describe to applicants the 
nature of the work in which they would be engaged, 
and also to equip me with knowledge which would en- 
able me to make transfers intelligently in case employees 
turned out to be unfitted for the particular jobs to 
which they were assigned. But these are but two of 
many instances of the value of job analysis. As Doctor 
Metcalf says in his report on Vocational Guidance: 

Thorough job analysis includes a careful study of every kind of 

occupation, both within the industry itself and in relation to the 

197 



MODERN METHODS IN THE OFFICE 

life of the employee outside of his occupation. In this way the 
total result of work analysis gives a complete view of the whole 
man. The significance and service of job analysis are being rapidly 
appreciated. Job analysis is carried on for varying reasons in 
different firms. In some places it is carried on in order to arrive 
at satisfactory wage schedules, initial and progressive. In several 
companies many work positions have been carefully analyzed 
and classified. The job duties have been briefly but fully defined, 
and a range of wage or salary prescribed with reference to definite 
periods of time. In the case of the more important positions, 
only minimum and maximum rates are prescribed. From time to 
time those schedules are revised to meet changing conditions of 
the work and of the labor-market. Such procedure aids in measur- 
ing productivity and gives a basis for rewarding workers. Outside 
experts are often employed to help in this work of job analysis. 

Job analysis is also of great service in the problem of original 
selection. When the employment bureau, which is responsible 
for selection, has complete data regarding requirements for the 
different jobs, these facts naturally direct those of the employment 
bureau responsible for selection to look for the required qualifi- 
cations in the applicants. Job analysis is made under the direc- 
tion of the employment department, to enable the employment 
manager and educational directors to select employees more cer- 
tainly, and to develop and protect them when placed. 

In one firm, where it took a workman from one to three years 
to become proficient in a certain job, it was found, as a result of 
job analysis, just why it took so long. It was pointed out by an 
educational expert how the period of preparation could be so 
guided that the operator could become proficient in a much shorter 
time than was then being required at the job. The job was one in 
which mechanical skill constituted about three-fourths and non- 
technical skill about one-fourth. Such analyses are of very great 
value. They point out to the employer just what preliminary 
training is necessary for different kinds of work, and he is then 
in a position to co-operate with educational agencies to have the 
operator trained in the shortest time possible. 

Job analysis helps to discover and determine lines of promotion. 

198 



TOWARD EFFICIENCY 

It enables a concern to know the possibilities of work alternation 
or transfer, and thus prepare the way for utilizing in one depart- 
ment laborers who may not fit well in another department. It is 
also of the greatest service in getting data and outlines for training 
courses — that is, it is of first importance in educational work. 

In one large manufacturing establishment, where they had 
begun job analysis in the different departments, the following 
data were taken from the cards covering the analysis of the power- 
house work, so as to reveal the logical sequence of promotion 
therein: 

a. Coal-handler. 

b. Ashman. 

c. Stoker. 

d. Boiler-cleaner. 

e. Water-tender. 
/. Wiper. 

g. Oiler. 

h. Water-operator. 
i. Steam and air operator. 
j. Switchboard-operator. 
k. Second engineer. 
I. First engineer. 

The helpful, constructive results gained from job analysis may 
be summarized as follows: 

a. It is a great help in initially selecting employees. 

b. It gives necessary data for outlining to the beginners the 
possibilities of advancement and indicates when wage increases 
may be expected, and what the anticipated maximum salary may 
become. 

c. It is of great assistance in transferring those not adapted to 
one kind of work to work that they can do best. 

d. It forces business to open up channels for promotion. It 
almost always enables a firm to get help from within. Rarely 
is it necessary to go outside for skilled workmen. When requi- 
sitions come for better men, the positions are filled by moving 
others up. This means in each transfer really filling two positions; 

one, the higher vacancy, and the other, the position from which 

199 



MODERN METHODS IN THE OFFICE 

the promoted man is taken. By this process the outside market 
is relied upon for filling only the low-grade positions in each case. 

e. It helps standardize wage and salary schedules, and thus is 
a vital factor in regularizing work. It stabilizes the work force. 

/. It is the best method for discovering the educational values 
of the work contents of the different jobs. 

g. It aids in the discovery of occupational dangers. Such de- 
tailed attention to jobs cannot help but reveal occupational health 
hazards, accidents, diseases, and ail conditions harmful to health. 

h. It is a great aid in the wise and just handling of grievances. 
Scientific job analysis is one of the best means for preventing griev- 
ances. Many of the disputes in industrial plants arise over injus- 
tice in wages, promotions, transfers, qualifications for particular 
jobs, etc. The only way to settle a dispute scientifically is to know 
the facts absolutely. Job analysis will fortify a company with 
more scientific data essential to the proper settlement of disputes 
than almost anything else. Job analysis, thus conceived, is a vital 
part of a scientifically constituted labor bureau, in that it serves 
as a clearing-house of information useful to all. It furnishes the 
foundation for trustworthy advice and sound guidance." 



How a Bank Can Help a Young Business Man 

"As it happens," said a young business man, "I 
have plenty of capital for my business and I never 
need to borrow. Despite this I do occasionally obtain 
a small loan. You'd be surprised if you knew my 
motive. 

"When I apply for a loan it generally leads to a dis- 
cussion of my business and its problems. The vice- 
president of my bank is a man for whose judgment I 
have the greatest respect. I doubt if he realizes how 
much I have learned from my talks with him or how 
many of his tips I've followed. 

200 



TOWARD EFFICIENCY 

"I marvel at the young men who overlook this op- 
portunity to obtain free advice. Every time you .con- 
sult a lawyer it costs you anywhere from five to five 
thousand dollars, depending upon the man and the 
subject of conversation. The lawyer has spent years 
in securing his knowledge and very justly charges you 
for it. 

"Many bankers possess a vast fund of knowledge 
which is just as valuable as the lawyer's, and in most 
cases it's yours for the asking. 

"The very nature of a banker's duties means that 
he is constantly analyzing the problems connected 
with hundreds of establishments. This gives him a 
broad grasp of practical economics and results in the 
acquirement of knowledge which can be applied to 
almost any business. 

"One New York banker was recently hired by a big 
firm of wholesale grocers at a salary of one hundred 
thousand dollars a year. Any time I can profit by the 
experience of a one-hundred-thousand~dollar-a-year 
man, free of charge, I figure that I'm just so much ahead 
of the game. 

"My advice to young men is to stand well with your 
banker. Keep on deposit a sum equal to twenty per 
cent, of your loans; don't invest your loans in per- 
manent assets, and clear up all indebtedness at least 
once a year. Then you'll find the banker's door-mat 
bearing the sign 'Welcome,' and if you're fortunate 
enough to be dealing with the type of banker to which 
I refer, the shrewd, keen, analytical type, who through 

long experience has developed a sixth sense for de- 

201 



MODERN METHODS IN THE OFFICE 

tecting danger signals, you'll find that his advice is 
one of the best business assets on your books." 



"Most Concerns Are Overstocked, " says this Business Man 

"I wonder how many billions of dollars are tied up 
in superfluous stocks of merchandise in this country," 
remarked the proprietor of a wholesale paper-house. 

" Consider the whole vast field of business: manu- 
facturers, jobbers, agents, and retailers; figure that 
most of them are carrying twice the quantity of stock 
that they need, and you're staggered at the thought 
of the total annual interest charge represented. This 
condition is due to haphazard order-placing and a 
lack of analysis. 

"Take my own case, for example. About two years 
ago I found myself hampered by lack of capital. I 
went to my banker to apply for a loan. 

"He studied my statement closely. 'You say you 
want to borrow !' he exclaimed. 'Why, Leonard, you 
ought to be in a position to lend! Your trouble is 
too much money, not too little. Like eveiy paper- 
man I've ever known, you're heavily overstocked. 
I'll wager you've never analyzed your orders to arrive 
at a standard of proper stock-keeping. And, further- 
more, I'll bet that you've paper in your warehouse 
which has been there for over two years. 

"' Before I lend you a dollar I want you to set your 
clerk to analyzing a typical month's business. Ascer- 
tain exactly what the demand is for. Reduce the result 
to a percentage basis. Then see how nearly your in- 

202 



TOWARD EFFICIENCY 

ventory agrees with your findings. You'll find that 
you're carrying vast quantities for which you seldom 
receive an order, and that you're low on lines for which 
the demand is frequent. 

"'You have at least twice as much money as you 
need tied up in stock. I know what I'm talking about 
because I once acted as receiver for a bankrupt paper 
concern. It will take you some time to get your stock 
into proper shape. But once you reduce it to a proper 
level, you'll find yourself with capital to invest in real 
estate, bonds, or whatever looks good to you. You'll 
find that you save storage rental and waste from 
depreciation, as well as interest on your investment. 

"'It's far better to buy a few items from your over- 
stocked competitors occasionally at a price which 
leaves you no profit than to stagger along as you're 
now doing under an incubus of superfluous merchan- 
dise.' 

"To make a long story short, I was appalled at the 
result of my analysis. Plainly there was little relation 
between the actual demand and my supply as shown 
by an inventory. Thereafter a chart of the ideal stock 
was checked weekly against my actual stock. It re- 
quired nearly a year to effect an agreement between 
the two. 

"When this was attained my investment was re- 
duced over thirty-five thousand dollars. Six per cent. 
on thirty-five thousand dollars is twenty-one hundred 
dollars. And this was not all that I saved. Rent, 
depreciation, labor, cartage, all these expense items were 
reduced, and I didn't lose a dollar's worth of sales." 

203 



MODERN METHODS IN THE OFFICE 

Centralization — the Modern Tendency in Business 

"The economies resulting from centralization are 
gradually becoming realized," remarked a manufact- 
urer, recently. "And it's surprising to note how 
varied are the conditions to which the principle applies. 

"Take the idea of scientific management. This in- 
volves, among other factors, the centralization of the 
thought to be expended upon a job into one depart- 
ment, the planning division. 

"Modern employment policies are based upon the 
same idea. Instead of having each foreman hire his 
own help, as in the old days, now the more progressive 
concerns have an employment department which does 
the hiring for the entire plant. Invariably this has re- 
duced the labor turnover, with the resulting economies. 

"Look at our oil-circulation system for a con- 
crete example of this idea of centralization." The 
speaker pointed to a small pump. "That pump dis- 
tributes oil to every machine on this floor. The fluid 
passes through horizontal pipes which run beneath the 
machines, and is forced upward through vertical pipes 
to the point of application, the cutting edge of the 
tool. After serving its function, the oil drains into 
little reservoirs and thence into a drain-pipe which 
parallels the horizontal distributing-pipe and, after 
filtration, is elevated to a tank suspended from the 
ceiling and once more begins its circulation through 
the plant. This plan saves the time of my men and 
saves oil. It typifies the economies consequent upon 
centralization. 

204 



TOWARD EFFICIENCY 

"Many people complain of the steady increase of 
the centralization of authority at Washington. The 
' states rights ' men affect to see in this evolution a 
menace to our liberties. My own idea is that you can- 
not stop this tendency even if it were not desirable. 
Centralization means efficiency. And efficiency means 
progress. You can't turn the hands of the clock of 
time backward. Centralization results in many ad- 
vantages, the two most conspicuous of which are, 
first, an avoidance of duplication of effort, and, sec- 
ond, the delegation of duties to the one man or group 
of men best fitted to assume them, the specialists in 
that line.' ' 

A Problem in Organization 

"Man rather than merchandise is the chief problem 
of the chain-store owner," said one, recently. "Every 
time you open a new store you've increased your risk 
in this connection just so much. 

"Here is the way I've met the problem. Each store 
manager in my chain owns a third of the stock of that 
particular store. This supplies the incentive for faith- 
ful, honest work. As he saves from his earnings, he 
may, if he wishes, invest in another store in partner- 
ship with the manager. 

"Thus many of my managers are interested not only 
in the success of their own store, but also in that of 
many of the chain. So far this plan has worked suc- 
cessfully. It explains, in part, why our cost of doing 
business is but ten per cent., a low record for this 
line." 

205 



MODERN METHODS IN THE OFFICE 

The Work of the United States Bureau of Standards 

The value to the community of the United States 
Bureau of Standards is inestimable. Through its ac- 
tivities, methods of scientific exactitude are fast being 
substituted in many industries for old-fashioned rule- 
of-thumb tactics. 

Recently several dental experts spent two days at 
the bureau to obtain assistance in devising a method 
of measuring the gradual changes in volume that take 
place during the setting of amalgams and cements 
used in filling teeth. The measurements sought were 
required in order to produce alloys and cements that 
would neither expand and produce pain from pressure 
in the cavity nor contract and admit bacteria. The 
measuring apparatus that had answered the require- 
ments of five or ten years ago was not sensitive or 
reliable enough for the high-grade alloys now produced. 
Before the visitors left the bureau a simple device 
was constructed and given a preliminary test which 
indicated a thoroughly satisfactory solution. 

That the bureau would ever figure as a board of 
arbitration, thus saving disputants thousands of dol- 
lars in legal expense and experts' fees, was never an- 
ticipated. 

Only the other day, however, it served in just this 
capacity. A manufacturer of cement-bags delivered a 
heavy shipment of his product to a large cement 
company. A controversy arose between the two parties 
as to the method of testing the bags to ascertain 
whether or not they met the specifications. All the 

206 



TOWARD EFFICIENCY 

elements were present for an expensive lawsuit which 
would have cost the litigants as much as the value of 
the goods involved. 

Happily it occurred to the purchaser to refer the 
question at issue to the Bureau of Standards. A series 
of tests was made which resulted in the conclusion 
that the bags measured up to standard, and the ne- 
cessity of appealing to the courts was thus avoided. 

Among the recent visitors to the bureau's textile 
section were a silk manufacturer who discussed methods 
of analyzing and testing silk; a bag manufacturer who 
discussed methods of testing various fabrics; the 
president of a knitting company which manufactures 
underwear and hosiery; the secretary of the Silk As- 
sociation of America; and a member of a Western 
knitting company operating the largest underwear- 
knitting factory in the world. 

Here are a few examples of the bureau's recent ac- 
tivities: Scale manufacturers were given an improved 
form of sliding poise. Rail specifications were fur- 
nished to the government of Australia. Measure- 
ments were made of surface temperatures around 
moving-picture machines. Problems connected with 
the design of a liquid-air plant were taken up. Among 
other subjects were: Spray method of metal-coating; 
improvement of brass castings; action of heat and 
acids on alloys; testing of refrigerators; testing of 
lubricating oils; thermostat to deliver water at a con- 
stant temperature; elastic properties of steel at high 
temperatures; relative merits of cast iron, wrought 
iron, and wrought steel for casing purposes for large 

207 



MODERN METHODS IN THE OFFICE 

and deep wells; substitute for aluminum; testing of 
glass; determination of kiln temperatures; and manu- 
facture and application of lime products. 

Why a Shorter Work-day Increases Production 

"What a commentary on the intelligence of the 
community !" exclaimed a merchant, as he scanned 
the head-lines of the paper. " Strikes declared on all 
sides, and more to come. And the cost of every strike 
is finally met by each one of us in the shape of higher 
living costs. 'It's a mad world, my masters!' Each 
man for himself and the devil take the hindmost. 

"There is a peculiar feature about the shorter 
work -day which has but recently been discovered. 
Scientific tests have established the fact that, in 
many lines of manual labor, a man will really ac- 
complish more in eight hours than in nine or ten. 
This is not due to any sentiment of gratitude for the 
reduction in hours; the man consciously exerts no 
more effort in an eight-hour work ^.ay than in a nine 
or ten. But, because the toxin of iatigue has less op- 
portunity to poison and exhaust the system, his effi- 
ciency is heightened and his production increased. 

"In a Belgian plant, the hours of the piece-workers 
were reduced from twelve to seven and a half. The 
men resented the cut because they expected it to lower 
their earnings. Within a short time their pay-enve- 
lopes contained more money than under the old regime. 
This surprised the men, but not the management, 
which had taken the step with just this object in view. 

208 



TOWARD EFFICIENCY 

"An English manufacturing plant, located at Man- 
chester, tried the experiment of cutting their work- 
week from fifty- three to forty-eight hours. The result 
was an increase in the per-capita production. 

"These are but two of many similar instances. Thus 
we find that although labor demands the 4 eight-hour 
day because it wants more time for rest and recreation, 
the fact of the matter is that, in many cases, it is to 
capital's interest to grant it. 

" Can't you see a grotesque element of humor in 
that situation? A strike is called for shorter hours; 
the employer says that he can't afford to grant the 
demand, and thereupon hires a band of assassins and 
plug-uglies to break the strike. Riot and anarchy 
prevail; production ceases; the militia is called out; 
and you and I complain of the increased cost of living. 
And if both parties to the controversy but realized it, 
the men are trying to force the management to make 
more money. If you doubt this, read Miss Josephine 
Goldmark's book, Fatigue and Efficiency, issued by the 
Russell Sage Foundation of New York. You'll begin 
to realize that many apparently conflicting interests 
are really not so at all; that, as Henry Ford says, the 
squarer deal you give your men the bigger your bank 
balance becomes.' ' 



THE END 



3W7-1 



